Bath/Head Office & Unquoted Equity Team:
London Office & Quoted Equity Team:
Edinburgh Office & European Quoted Equity Team:

Investor Information

C Share Offer

Investment Objective

The Trust is first and foremost an income fund. It seeks to provide high and growing income alongside the opportunity for capital growth. It is the top-performing UK Equity Income trust over one, three and five years, outperforming the UK Equity Income sector as well as the MSCI UK Small Cap and Numis Smaller Companies indices over these periods and the long-term.

Capital Raise

In light of the Company’s strong and sustained track record as well as the availability of attractive investments, and as announced on 6 November 2017, the Board believes that it is an appropriate point to seek to increase the size of the Company and raise additional capital.  The existing investment objective and policy will remain unchanged and the Company intends to use the Net Proceeds of the Issue to add to existing holdings and to make new investments.

A Prospectus has now been published (see below for link) and is available to view, in relation to the Placing Programme and:

  1. The offer of a maximum of 75 million C Shares to be issued at the Issue Price of 100 pence per share through a placing, Intermediaries Offer and Offer for Subscription;
  2. A target issue of approximately 30 million ZDP Shares pursuant to a rollover offer and Placing of 2025 ZDP Shares at the ZDP Issue Price of 100 pence per ZDP Share.

Click here for Prospectus

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Click here for the KID Document for C Shares

Click here for the KID Document re SDV 2025 ZDP plc

These “KID” documents provide you with key information about these investment products. They are not marketing material.
The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and
to help you compare it with other products.

 

Click here to view an introduction to the Trust.

How to Invest in the C Share Issue

Please contact your financial adviser or stockbroker; alternatively, you can invest through the following platforms:

AJ Bell Securities Limited  
Albert E Sharp LLP
Alliance Trust Services Limited
Barclays Bank PLC
Cornhill Capital Limited
Equiniti Financial Services Limited
iDealing.com Limited  
Jarvis Investment Management Limited
Redmayne-Bentley LLP
Saga Share Direct Limited
Self Trade Limited
The Share Centre Limited
Share Deal Active Limited
Syndicate Room Ltd
Walker Crips PLC
X-O.co.uk

Application to acquire C Shares pursuant to the Offer for Subscription

Applications to participate in the Offer for Subscription must complete an Application Form.

Each completed Application Form must:

  1. specify the amount, in sterling, that the applicant wishes to apply for pursuant to the Offer for Subscription, as set out in the Application Form; and
  2. be accompanied by a cheque or banker’s draft in accordance with the instructions set out in the Application Form (or such other method of payment as may be agreed by the Company and its Agents).

Expected Timetable for the C Share Issue

C Share Offer for Subscription and Intermediary Offer closes

21 December 2017

Announcement of the results of the C Share Offer

22 December 2017

Initial Admission and dealings in C Shares commences

8 January 2018

Recent Regulatory Announcements

Investment Strategy and Risk Management

The Trust’s funds are invested principally in companies with a market capitalisation of less than £500 million; a maximum of 20% of the Group’s portfolio can be invested in companies without reference to their market capitalisation at the discretion of the Investment Manager. The Trust’s portfolio comprises companies listed on the Official List and companies trading on AIM. The investment strategy comprises:

  • Valuation is based around the dividend.
  • Having satisfied the requirements relating to ability and propensity to pay dividends, there is a target yield at which we would purchase stock in a new holding. This is relative and is based on prospects for dividend growth. The minimum requirement is 4% on a 12-month view
  • The sale process is based on a yield appraisal. Stocks tend to be sold below a 2% prospective yield. This is a key valuation discipline and also ensures that the fund will continue to retain a high portfolio yield.
  • We have sell targets at a higher yield for some stocks that have lower dividend growth prospects and stocks are reviewed on dividend cuts or lower rates of growth compared to our expectations
  • Minimum 50 stocks
  • Top 10 stocks represent 22% of the portfolio
  • Largest holding is limited to 5% of gross assets, and currently represents 2.80%
  • No more than 5% of the income can be generated from a single stock and currently the highest income contributor represents 3.64%

 

Capital Raise Factsheet October 2017 Factsheet