| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2027.74 | 1391 |
| Intrinsic value (DCF) | 59.19 | -56 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 12.29 | -91 |
Chelverton UK Dividend Trust PLC (SDV.L) is a UK-focused small-cap equity mutual fund managed by Chelverton Asset Management Limited. Listed on the London Stock Exchange, the fund primarily targets dividend-paying small-cap companies with market capitalizations below £500 million across diversified sectors. Formerly known as Small Companies Dividend Trust Plc, it was established in 1999 and aims to provide investors with income and capital growth through a concentrated portfolio of undervalued UK small-cap stocks. The fund's strategy emphasizes high dividend yields and long-term value creation, positioning it as a niche player in the UK asset management sector. With a market cap of approximately £31.6 million, Chelverton UK Dividend Trust appeals to income-seeking investors looking for exposure to the UK's dynamic small-cap market. Its focus on dividend sustainability and selective stock-picking differentiates it from broader market index funds.
Chelverton UK Dividend Trust PLC offers a specialized investment approach targeting UK small-cap dividend stocks, which may appeal to income-focused investors. However, the fund's small-cap focus introduces higher volatility and liquidity risks, as reflected in its beta of 0.845. The fund reported a net loss of £4,000 in the latest fiscal year, though it maintained a strong operating cash flow of £2.15 million and a dividend payout of 12.9p per share. The fund's high debt level (£18.6 million) relative to its cash position (£87,000) raises concerns about financial flexibility. Investors should weigh the potential for high dividend yields against the inherent risks of small-cap investing and the fund's leveraged position.
Chelverton UK Dividend Trust PLC competes in the niche segment of UK small-cap dividend funds, differentiating itself through active management and a focus on high-yield small-cap stocks. Its competitive advantage lies in Chelverton Asset Management's expertise in identifying undervalued small-cap companies with sustainable dividends. However, the fund's small size (£31.6 million market cap) limits its scale advantages compared to larger UK equity income funds. The fund's concentrated portfolio increases stock-specific risk, though this may also lead to outperformance if stock selection is successful. Its high debt load could constrain performance during market downturns, putting it at a disadvantage versus more conservatively leveraged peers. The fund's performance is highly correlated with the UK small-cap market, making it less diversified than broader UK or global equity income funds.