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Aberforth Smaller Cos Trust PLC on Thursday declared an increased dividend, but saw its net asset value return lag its benchmark index. The investor in UK smaller companies reported a net asset value per share total return of 7.9% in 2025, underperforming its benchmark, the Deutsche Numis Smaller Companies Index, which returned 12.7% over the same period. The investment trust’s net asset value per share rose 4.7% to 1,745.26p from 1,666.95p. Aberforth Smaller Cos noted returns during the year were impacted by concerns around economic activity both domestically and abroad. ‘Economic cyclicality hampered ASCoT’s performance in 2025, but it is the Managers’ experience that the stockmarket tends to under-estimate the resilience of smaller companies and thus creates the conditions for a strong recovery in due course,’ the trust said. Aberforth Smaller Cos proposed a final dividend of 32.5p per share, up 8.3% from the prior year’s 30.0p. Combined with its interim divided of 12.3p, the full-year dividend rose to 46.8p, reflecting growth of 7.3% from 43.6p In addition to the ordinary dividend, the trust proposed a special dividend of 12.0p, bringing its total dividend to 58.8p. The company also noted that its performance during the year continued to benefit from takeover interest, as recommended bids for eight of the investee companies were received in 2025. Shares in the trust were up marginally at 1,680.84 on Thursday afternoon in London. Looking ahead, Aberforth Smaller Cos said it is unlikely the upisde from AI investment will be confined to just the companies that deploy the capital, adding it is ‘plausible’ that its portfolio holdings may also benefit. It added that a more significant near term influence on the fortunes of smaller UK listed firms is likely to be the direction of the UK economy. ‘Over ASCoT’s 35 years, the Managers’ consistent investment approach has achieved superior returns for Shareholders. Their value investment philosophy, understanding of the companies and active engagement are particularly well suited to the current opportunity in small UK quoted companies and bode well for future returns,’ the trust said. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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