Page 16 - DIY Investor Magazine - Issue 25
P. 16

Risk factors you should consider prior to investing:
• The value of investments and the income from them can go down as well as up and you may get back less than the amount invested.
• Past performance is not a guide to future results.
• Investment trusts are specialised investments and may not be appropriate for all investors.
• There is no guarantee that the market price of a Trust’s shares will fully reflect its underlying Net Asset Value.
• As with all stock exchange investments the value of the Company’s shares purchased will immediately fall by the difference
between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen.
• The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net
Asset Value (NAV) meaning that any movement in the value of the company’s assets will result in a magnified movement in
the NAV.
• The Alternative Investment Market (AIM) is a flexible, international market that offers small and growing companies the
benefits of trading on a world-class public market within a regulatory environment designed specifically for them. AIM is owned and operated by the London Stock Exchange. Companies that trade on AIM may be harder to buy and sell than larger companies and their share prices may move up and down very sharply because they have lower trading volumes and also because of the nature of the companies themselves. In times of economic difficulty, companies listed on AIM could fail altogether and you could lose all your money.
• Certain Companies treat the generation of income as a higher priority than capital growth; such Companies may deduct part or all of their management charge from capital. This will increase the amount of income available but at the expense of capital growth.
• Shares of smaller companies may be more difficult to buy and sell than those of larger companies. This means that the Investment Manager may not be able to buy and sell at the best time or may suffer losses. This could reduce your returns.
• Companies selected for illustrative purposes only to demonstrate the investment management style described herein and
not as an investment recommendation or indication of future performance.
Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1XL. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. You should obtain specific professional advice before making any investment decision.
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Select Standard Life UK Smaller Companies Trust GB0002959582
   DIY Investor Magazine | Sept 2020 16

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