Aberdeen Standard Investments' Abby Glennie, manager of the £74m Aberdeen Smaller Companies Income trust, has said the portfolio is now broadly where she intends it to be following an overhaul of its holdings and investment style in the six months since she took full managerial responsibility.
Some inherited names Glennie particularly likes include utilities provider Telecom Plus and IT business Aveva, both of which the smaller companies team have held historically but not in recent years.
"After doing the work and putting them through the matrix, we felt both these names could stay," she said. "Telecom has previously found it tough to grow but the environment has now changed, driven by dynamic pricing and a competitive environment.
"Meanwhile, Aveva's growth prospects have improved which is becoming harder for a lot of businesses to achieve. In 2019 we are focusing on quality."
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Hostelworld, Midwich and recently listed AJ Bell are among new names in the portfolio, while Glennie made reductions in a number of stocks including chemicals company Elementis and brewers Fuller Smith & Turner.
The fund also has exposure to fixed income and preference shares, which helps boost the level of income.
"This means we can be more flexible in terms of investing in lower dividend stocks on the equity side," Glennie added.
