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About this investment trust

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

The Company aims to achieve long-term capital growth for shareholders through investment mainly in smaller UK quoted companies.

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Blackrock Smaller Companies Trust plc

The Blackrock Smaller Companies Trust aims to achieve long-term capital growth by investing in small and mid-sized UK quoted companies.

With more than a thousand of these companies listed on the UK stock market, the opportunity set is vast and diverse.(1)

This is an under-researched part of the market, which portfolio manager Roland Arnold believes leads to exciting and under-valued opportunities with sustainable organic growth potential.

This is because smaller companies tend to be more focused and nimble, which allows them to respond quickly to change.

Roland looks to identify ‘hidden gems’ in niche growth areas, looking for five key characteristics.

(1)Strong management teams

(2)Market leadership which provides pricing power

(3)A track record of growth

(4)Good cash generation that funds future growth

(5)Financial strength to overcome difficult market conditions

Roland also has a strong sell discipline, which involves managing risk based on portfolio weight rather than target price. This means taking profits as shares outperform and topping back up to target should shares underperform.

[FINAL SLIDE]

Smaller Companies

Finding the hidden gems in the UK’s diverse and exciting smaller companies market.

Key differentiators

(1)Managed by a highly experienced investment team with a robust investment process(1)

(2)Focuses on high-quality growth businesses with the ability to generate sustainable long-term growth(2)

(3)Fully leverages the benefits of Blackrock’s scale with excellent market access, close relationships with company management and dedicated stewardship resources(3)

Marketing Material.

Risk Warnings

Investors should refer to the prospectus or offering documentation for the funds full list of risks.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

Fund-specific risks

BlackRock Smaller Companies Trust plc

Counterparty Risk, Gearing Risk, Liquidity Risk, Smaller Company Investments

Description of Fund Risks

Counterparty Risk

The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.

Gearing Risk

Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.

Liquidity Risk

The Fund's investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.

Smaller Company Investments

Shares in smaller companies typically trade in less volume and experience greater price variations than larger companies.

Important Information

In the UK this is issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

UK Investment Trust Funds: This document is marketing material. The Company is managed by BlackRock Fund Managers Limited (BFM) as the AIFM. BFM has delegated certain investment management and other ancillary services to BlackRock Investment Management (UK) Limited. The Company’s shares are traded on the London Stock Exchange and dealing may only be through a member of the Exchange. The Company will not invest more than 15% of its gross assets in other listed investment trusts. SEDOL™ is a trademark of the London Stock Exchange plc and is used under licence.

Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance.

The investment trusts listed above currently conduct their affairs so that their securities can be recommended by IFAs to ordinary retail investors in accordance with the Financial Conduct Authority’s rules in relation to nonmainstream investment products and intend to continue to do so for the foreseeable future. The securities are excluded from the Financial Conduct Authority’s restrictions which apply to non-mainstream investment products because they are securities issued by investment trusts. Investors should understand all characteristics of the funds objective before investing. For information on investor rights and how to raise complaints please go to https://www.blackrock.com/corporate/compliance/investor-right available in local language in registered jurisdictions.

BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. To ensure you understand whether our product is suitable, please read the fund specific risks in the Key Investor Document (KID) which gives more information about the risk profile of the investment. The KID and other documentation are available on the relevant product pages at www.blackrock.co.uk/its. We recommend you seek independent professional advice prior to investing.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.

© 2024 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS and iSHARES are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

Source: https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-smaller-companies-investment-trust/trust-information – 0m 16s to 0m 22s, page 4, https://www.blackrock.com/uk/literature/interim-report/blackrock-smaller-companies-trust-plc-interim-report.pdf
Source: https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-smaller-companies-investment-trust/trust-information – 0m 27s to 0m 36s
Source: https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-smaller-companies-investment-trust/trust-information – 3m 53s to 4m 34s
(1)https://www.investmentweek.co.uk/news/4053617/uk-listed-companies-falls#:~:text=UK%20AIM%20IPOs%20fall%20to%20lowest%20levels%20since%202009&text=In%20May%202019%2C%20there%20were,%C2%A326bn%20in%20tax%20revenue.

MKTGH0224E/S-3393867

Blackrock Smaller Companies Trust plc

The Blackrock Smaller Companies Trust aims to achieve long-term capital growth by investing in small and mid-sized UK quoted companies.

With more than a thousand of these companies listed on the UK stock market, the opportunity set is vast and diverse.(1)

This is an under-researched part of the market, which portfolio manager Roland Arnold believes leads to exciting and under-valued opportunities with sustainable organic growth potential.

This is because smaller companies tend to be more focused and nimble, which allows them to respond quickly to change.

Roland looks to identify ‘hidden gems’ in niche growth areas, looking for five key characteristics.

(1)Strong management teams

(2)Market leadership which provides pricing power

(3)A track record of growth

(4)Good cash generation that funds future growth

(5)Financial strength to overcome difficult market conditions

Roland also has a strong sell discipline, which involves managing risk based on portfolio weight rather than target price. This means taking profits as shares outperform and topping back up to target should shares underperform.

[FINAL SLIDE]

Smaller Companies

Finding the hidden gems in the UK’s diverse and exciting smaller companies market.

Key differentiators

(1)Managed by a highly experienced investment team with a robust investment process(1)

(2)Focuses on high-quality growth businesses with the ability to generate sustainable long-term growth(2)

(3)Fully leverages the benefits of Blackrock’s scale with excellent market access, close relationships with company management and dedicated stewardship resources(3)

Marketing Material.

Risk Warnings

Investors should refer to the prospectus or offering documentation for the funds full list of risks.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

Fund-specific risks

BlackRock Smaller Companies Trust plc

Counterparty Risk, Gearing Risk, Liquidity Risk, Smaller Company Investments

Description of Fund Risks

Counterparty Risk

The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.

Gearing Risk

Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.

Liquidity Risk

The Fund's investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.

Smaller Company Investments

Shares in smaller companies typically trade in less volume and experience greater price variations than larger companies.

Important Information

In the UK this is issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

UK Investment Trust Funds: This document is marketing material. The Company is managed by BlackRock Fund Managers Limited (BFM) as the AIFM. BFM has delegated certain investment management and other ancillary services to BlackRock Investment Management (UK) Limited. The Company’s shares are traded on the London Stock Exchange and dealing may only be through a member of the Exchange. The Company will not invest more than 15% of its gross assets in other listed investment trusts. SEDOL™ is a trademark of the London Stock Exchange plc and is used under licence.

Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance.

The investment trusts listed above currently conduct their affairs so that their securities can be recommended by IFAs to ordinary retail investors in accordance with the Financial Conduct Authority’s rules in relation to nonmainstream investment products and intend to continue to do so for the foreseeable future. The securities are excluded from the Financial Conduct Authority’s restrictions which apply to non-mainstream investment products because they are securities issued by investment trusts. Investors should understand all characteristics of the funds objective before investing. For information on investor rights and how to raise complaints please go to https://www.blackrock.com/corporate/compliance/investor-right available in local language in registered jurisdictions.

BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. To ensure you understand whether our product is suitable, please read the fund specific risks in the Key Investor Document (KID) which gives more information about the risk profile of the investment. The KID and other documentation are available on the relevant product pages at www.blackrock.co.uk/its. We recommend you seek independent professional advice prior to investing.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.

© 2024 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS and iSHARES are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

Source: https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-smaller-companies-investment-trust/trust-information – 0m 16s to 0m 22s, page 4, https://www.blackrock.com/uk/literature/interim-report/blackrock-smaller-companies-trust-plc-interim-report.pdf
Source: https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-smaller-companies-investment-trust/trust-information – 0m 27s to 0m 36s
Source: https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-smaller-companies-investment-trust/trust-information – 3m 53s to 4m 34s
(1)https://www.investmentweek.co.uk/news/4053617/uk-listed-companies-falls#:~:text=UK%20AIM%20IPOs%20fall%20to%20lowest%20levels%20since%202009&text=In%20May%202019%2C%20there%20were,%C2%A326bn%20in%20tax%20revenue.

MKTGH0224E/S-3393867

Why choose it?

We aim to find the ‘hidden gems’ within the small cap universe, investing in high-quality growth companies that are able to shape their own futures regardless of the wider economic environment. As active managers, we believe this area presents us with an attractive hunting ground: these companies are often under-researched, and pricing is inefficient. This gives us great opportunities to generate returns for our clients over the long term.

Suited to…

Investors looking for carefully selected opportunities among the UK’s vibrant small cap sector for long-term capital growth. Investors need to be able to tolerate variation in their capital.

BlackRock Smaller CompaniesTrust FAQs

  • The BlackRock Smaller Companies Trust’s seeks to achieve long-term capital growth for investors by predominantly investing in smaller UK companies. It aims to uncover “hidden gems” within the small-cap realm, focusing on high-quality growth companies capable of shaping their own futures irrespective of broader economic conditions. As active managers, the Trust views the small-cap space as attractive for its potential for under-researched opportunities and inefficient pricing, providing ample opportunities to generate returns over the long term.

  • Roland Arnold has been the manager of BlackRock Smaller Companies Trust since 2018. He is also co-manager of the BlackRock UK Special Situations Fund, a manager of Small and Mid-Cap UK Equity Portfolios and a member of the UK Equity Team.

  • Dividends are declared and paid out semi-annually. Interim dividend payments are made in November with the final payment of dividends on ordinary shares being paid in June.

  • The smaller companies sector which the BlackRock Smaller Companies Trust invests in is home to numerous market-leading businesses that have historically outperformed larger companies over the long term1. Smaller companies can be more focused, enabling investors to target niche growth areas that may not be as accessible with larger, more diversified companies. They can respond quickly to market changes, and be more entrepreneurial in seizing opportunities. Overall, investing in smaller companies can enhance returns and bring valuable diversification to client portfolios.2

    1 Source: Kepler Trust Intelligence as at June 2023.
    2 Source: BlackRock as at April 2023.

  • Smaller companies may be considered to be riskier investments due to factors including greater volatility, limited financial resources, lower market liquidity, concentrated business risk and a limited track record. Smaller companies can experience higher price fluctuations, making them more susceptible to economic downturns and unexpected challenges. Their limited financial resources may pose challenges during adverse market conditions, and lower liquidity can result in larger price swings.

    Despite these risks, smaller companies could offer growth opportunities and the BlackRock Smaller Companies Investment Trust actively manages these challenges to potentially capitalise on higher returns while navigating associated risks through thorough research and strategic investment decisions.

Image of Morningstar rating logo 

Morningstar Rating: Since January 2012.
Awards/Ratings have not been superseded to date.

The Morningstar Analyst Rating is subjective in nature and reflects Morningstar’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, Morningstar does not guarantee that a fund will perform in line with its Morningstar Analyst Rating. Likewise, the Morningstar Analyst Rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision.

Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product or strategy.

What are the risks?

  • Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
  • Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance.
  • The Trust’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Trust may not be able to realise the investment at the latest market price or at a price considered fair.
  • Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.
  • Smaller company investments are often associated with greater investment risk than those of larger company shares.
Image of a target board
Investment strategies targeting growth and income.
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Decades of proven experience running investment trusts since 1992.
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Unparalleled research capabilities and experienced stock pickers.
Contact
To get in touch contact us on:
Telephone: 020 7743 3000
Email: cosec@blackrock.com