Miton UK Microcap plc

UK Smaller Companies

Rated Fund 2017-2018. Looks at smallest companies through the lens of productivity

This trust may be a newbie, having only been launched in 2015, but its investors are tapping into the expertise of Gervais Williams and Martin Turner, who have a wealth of experience in smaller companies. They target the smallest end of the market – companies with a market capitalisation of less than £150 million at the time of investment – and have more than 80 per cent invested in Aim-listed companies.Ben Willis, head of research at Whitechurch Securities, which has backed the trust since launch, says: 'You are investing right at the bottom end of the UK stock market along with all the risks that entails. This is a trust for those with a very long-term perspective hoping to achieve the high growth potential that investing in microcaps can bring.'This universe of companies offers a degree of diversification from the mainstream stocks and the portfolio is well-diversified with 130 holdings.When seeking potential investments, the managers generally look for companies improving their productivity or that are 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 9 per cent in the preceding 18 months. This could point to an attractive entry point for new investors.

Narrative and ratings content all as of 01 January 2018.

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
1.58 %
Risk Rating
1
3 Year Sharpe
0.68
3 Year Alpha
1.74
Yield
0.5 %
Benchmark
0.51297 %
Fund Size
£ 102.28 million
NAV
72
Gearing
100
Discount Premium
-7
To invest 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. It is likely that the majority of the microcap companies held in the Company's portfolio will be quoted on AIM and will typically have a market capitalisation of less than GBP 150 million at the time of investment.
Holding %
Yu Group PLC 4.51 %
Kape Technologies PLC 4.34 %
Frontier IP Group PLC 3.39 %
Cerillion PLC 2.75 %
Nanoco Group PLC 2.74 %
Zotefoams PLC 2.70 %
Kromek Group PLC 2.14 %
Bilby PLC 2.03 %
Corero Network Security PLC 1.97 %
Science in Sport PLC 1.93 %
Region %
United Kingdom 83.12 %
Sector %
Technology 29.56 %
Industrials 14.79 %
Basic materials 14.12 %
Financial Services 10.46 %
Consumer Cyclical 7.60 %
Healthcare 6.91 %
Energy 6.12 %
Utilities 5.83 %
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.

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.

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