Miton UK Microcap plc

UK Smaller Companies

Update: 6 August 2019: Miton UK MicroCap - on performance watch
Full details regarding why we have taken this decision can be found here.

Rated Fund 2017-19. Looks at smallest companies through the lens of productivity

Miton UK MicroCap has struggled since the sell-o in developed world stock markets last October, signi­ficantly underperforming the FTSE Aim All-Share index in the second half of 2018.

However, with this trust investors are not only tapping into the experience of Gervais Williams and Martin Turner, two veterans in smaller companies investing, they are also gaining dedicated exposure to the smallest listed companies in the UK stockmarket.

Launched in 2015, the trust invests right at the bottom end of the size spectrum – companies with a market capitalisation of less than £150 million at the time of investment. This brings with it a high degree of risk, making this one for investors with a long-term perspective hoping to achieve the high growth potential that investing in microcaps can bring.

The trust has more than 80% of its assets invested in companies listed on the Alternative Investment Market, thereby offering a degree of diversi­fication from mainstream funds. The portfolio is well diversi­fied with almost 120 holdings.

When seeking potential investments, the managers generally look for companies improving their productivity or well-positioned to take extra market share on the basis of their premium service levels.

Improvements in productivity result in greater cash flow that businesses can use to fund yet more productivity improvements, as well as ultimately a stream of growing dividends that should lead to an increase in market value over time.

Shares in the trust have traded at a discount to net asset value – typically mid-single digit – since mid-2016, though they were on a premium of up to 10% in the preceding 18 months. This could indicate an attractive entry point for new investors.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Miton UK Microcap plc
Manager
Miton Trust Managers Limited
Type
Closed Ended Investment Company
ISIN
GB00BWFGQ085
Sector
UK Smaller Companies
Launched
30/04/2015
OCF
1.5 %
Risk Rating
2
3 Year Sharpe
-0.22
3 Year Alpha
-7.72
Yield
0.7 %
Benchmark
FTSE All Share TR
Fund Size
£ 65.29 million
NAV
51
Gearing
89
Discount Premium
-7
The Company invests primarily in the smallest quoted or traded companies, measured by their market capitalisation, listed on any of the markets of the London Stock Exchange at the time of investment, in order to provide shareholders with capital growth over the long term. The Company may also invest in debt, warrants or convertible instruments issued and may invest in, or underwrite, future equity issues.
Holding %
RockRose Energy PLC 5.31 %
Cerillion PLC 4.13 %
Frontier IP Group PLC 3.54 %
Kromek Group PLC 3.16 %
Kape Technologies PLC 3.09 %
Aquis Exchange PLC 2.85 %
Reabold Resources PLC 2.32 %
i3 Energy PLC 2.12 %
Science in Sport PLC 2.07 %
Corero Network Security PLC 1.96 %
Region %
United Kingdom 85.87 %
Sector %
Technology 24.11 %
Industrials 15.86 %
Energy 15.66 %
Financial Services 14.83 %
Healthcare 10.44 %
Basic materials 10.05 %
Name
Miton Trust Managers Limited
Address
EC4M 8AB, London, United Kingdom
Legal Structure
Closed Ended Investment Company

Managers

Gervais Williams
Joined 04/30/2015

Gervais joined the Company in 1993 and heads Gartmore's award-winning smaller companies team. He has over fifteen years experience in smaller company investment. Believing that strong management is one of the keys to smaller company share price performance, Gervais and the team attend around 700 company meetings each year. These meetings are the cornerstone to their rigorous stock selection process.Prior to 1993, Gervais spent three years at Thornton Investment Management where he was responsible for a new investment strategy for the smaller companies unit. Gervais previously spent five years at Throgmorton Asset Management as a director responsible for segregated smaller company portfolios. Gervais graduated from the University of Liverpool in 1980 with an Honours degree in Engineering.

Martin Turner
Joined 04/30/2015

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.