Miton UK Microcap plc

UK Smaller Companies

Update: 16 October 2019: Miton UK MicroCap - remains on performance watch
Full details regarding why we have taken this decision can be found here.

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
-0.39
3 Year Alpha
-8.49
Yield
0.4 %
Benchmark
FTSE All Share TR
Fund Size
£ 64.19 million
NAV
49
Gearing
89
Discount Premium
-5
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 %
Cerillion PLC 4.42 %
RockRose Energy PLC 3.78 %
Kape Technologies PLC 3.67 %
Frontier IP Group PLC 3.63 %
Aquis Exchange PLC 3.25 %
Kromek Group PLC 3.19 %
MTI Wireless Edge Ltd 2.79 %
Reabold Resources PLC 2.42 %
Eland Oil & Gas PLC 2.30 %
Science in Sport PLC 1.99 %
Region %
United Kingdom 83.09 %
Africa 5.01 %
Sector %
Technology 23.63 %
Industrials 16.97 %
Financial Services 16.63 %
Energy 12.02 %
Basic materials 11.83 %
Healthcare 10.41 %
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 Williams joined Miton Group plc in 2011. He manages a number of funds and trusts that aggregate to just under £2.0bn. He is also Senior Executive Director at Miton Group plc. His fund management career extends over 30 years including 17 years at Gartmore Group Ltd, where he was head of UK Small Companies investing in UK smaller companies and Irish equities. Gervais is a member of the AIM Advisory Council, chairman of the Quoted Companies Alliance and a board member of The Investment Association. He is also on the EU Taskforce reviewing why the number of smaller IPOs has declined over recent decades. Gervais Williams published his first book 'Slow Finance' in the autumn of 2011, and his second book 'The Future is Small' was published in November 2014. His most recent book 'The Retreat of Globalisation' was published in December 2016.

Martin Turner
Joined 04/30/2015

Martin Turner joined Miton Group plc in May 2011. Martin's career in the City began in 1995 where he qualified as a Chartered Accountant with Arthur Andersen. He moved to Rothschild and in time on to Head of Pan European Mid and Small Cap Sales at Merrill Lynch. Following this, Martin was Head of Sales at Teathers/Landsbanki before taking the Head of Small/Mid Cap Equities role covering research, sales and trading at Collins Stewart. Martin graduated from Warwick University with a degree in Accounting and Financial Analysis.

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.