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Aberforth Smaller Cos Trust PLC on Tuesday said the investment outlook has been complicated by Donald Trump’s second presidency, as it reported a higher net asset value that nevertheless underperformed against its benchmark. The investor in UK smaller companies looking to outperform the Deutsche Numis Smaller Cos Index said net asset value per share rose 3.9% to £1,731.97 pence from 1,666.95p at December 31. NAV total return was 6.3% in the first half of 2025, underperforming against the Deutsche Numis Smaller Cos Index which generated a total return of 7.0%. Aberforth Smaller announced an interim dividend of 14.30p per share, up 5.1% from 13.60p a year ago. Looking ahead, managers Aberforth Partners LLP said that the investment outlook has been complicated by ‘Donald Trump’s convulsive second presidency and its challenge to some of the assumptions that have long underpinned the financial world.’ ‘Dollar weakness may well be welcomed by the Trump administration and has been seen before, but the present bout is accompanied by debate about whether the dollar risks losing the exorbitant privilege of reserve currency status,’ Aberforth Partners said. ‘There is also debate about the risk-free nature of US government debt, as fiscal spending looks set to rise under the ’One Big Beautiful Bill Act’ and as foreign governments, disconcerted by the tariffs, question the wisdom of parking their reserves in treasuries.’ They added that current macroeconomic and geopolitical threats ‘improve the likelihood of a good investment experience over time, particularly when other companies, overseas investors and private equity are already taking advantage of the valuations on offer among small UK quoted companies.’ Aberforth Smaller shares were marginally higher at 1,564.41 pence each on Tuesday afternoon in London, giving it a market capitalisation of £1.27 billion. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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