Unicorn UK Smaller Companies B (UD44)

Unicorn UK Smaller Companies B (UD44) Introduction

Investing in smaller companies focuses on those with relatively low market capitalisations, typically those companies contained within the FTSE Small Cap, FTSE Fledgling, FTSE Aim or Numis Smaller Companies indices. Generally, smaller companies can be heading in two directions - they may be newer, fast growing companies, or they may be yesterday's fallen angels. In both cases, the risks are likely to be greater than with a larger and more established company. 
Companies in this part of the market will tend to attract less coverage by stockbrokers and analysts, meaning that there is - theoretically at least - more mispricing for skilled investors to exploit.  However, it also means that smaller companies require greater independent research than larger companies. The rewards can be significant if an investment manager picks the right companies, but smaller companies are also more likely to go bust, leaving shareholders with nothing. 
In general, smaller companies may find it easier to succeed at times of economic expansion, when it is easier to grow revenues and funding is more readily available. Smaller companies managers may prioritise different types of company when investing – such as technology, or high growth, or dividend-paying. For those willing to take greater risks with their capital, venture capital and private equity trusts can also be an option.

Investing in smaller companies focuses on those with relatively low market capitalisations, typically those companies contained within the FTSE Small Cap, FTSE Fledgling, FTSE Aim or Numis Smaller Companies indices. Generally, smaller companies can be heading in two directions - they may be newer, fast growing companies, or they may be yesterday's fallen angels. In both cases, the risks are likely to be greater than with a larger and more established company. 

Companies in this part of the market will tend to attract less coverage by stockbrokers and analysts, meaning that there is - theoretically at least - more mispricing for skilled investors to exploit.  However, it also means that smaller companies require greater independent research than larger companies. The rewards can be significant if an investment manager picks the right companies, but smaller companies are also more likely to go bust, leaving shareholders with nothing. 

In general, smaller companies may find it easier to succeed at times of economic expansion, when it is easier to grow revenues and funding is more readily available. Smaller companies managers may prioritise different types of company when investing – such as technology, or high growth, or dividend-paying. For those willing to take greater risks with their capital, venture capital and private equity trusts can also be an option.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change.

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B16.7923.58117.9345.361.77Buy
AXA Framlington UK Smaller Cos Z Acc14.5240.13136.30285.990.90Buy
Aberdeen UK Smaller Companies Equity I Acc17.6718.1881.46312.621.80Buy
Aberforth UK Small Companies21.1221.51102.54241.88-Buy
Artemis UK Smaller Companies I Acc24.0436.4599.91390.811.70Buy
Aviva Inv UK Smaller Companies 210.9315.7586.7141.360.78Buy
Baillie Gifford British Smaller Companies B Acc15.6316.0485.21184.610.81Buy
BlackRock UK Smaller Companies D Acc21.2029.04103.52416.401.07Buy
CF Miton UK Smaller Companies B Acc15.5315.74-173.110.63Buy
F&C UK Smaller Companies 2 Acc16.3632.70116.4332.441.10Buy
FP Octopus UK Micro Cap Growth P Acc25.4810.8067.4320.01-Buy
Franklin UK Smaller Companies W Acc9.5024.6690.95260.591.19Buy
Henderson UK & Irish Smaller Companies I Acc11.026.7565.71164.670.50Buy
Henderson UK Smaller Companies I Acc16.5230.06116.32134.671.40Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc22.2338.97114.46587.561.01Buy
Investec UK Smaller Companies I Acc GBP6.787.1087.18339.371.83Buy
JPM UK Smaller Companies C Acc10.0516.0082.55120.411.05Buy
Jupiter UK Smaller Companies I Acc29.2538.66103.0496.930.50Buy
Kames UK Smaller Companies D Acc9.7317.8585.80276.001.10Buy
Kames UK Smaller Companies B Acc10.0018.6587.68276.001.32Buy
L&G UK Smaller Companies Trust I Acc8.9717.7590.34327.891.40Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B16.7923.58117.9345.361.77Buy
AXA Framlington UK Smaller Cos Z Inc14.5540.18136.38285.990.90Buy
Aberforth UK Small Companies Inc21.1621.65102.91241.882.58Buy
Baillie Gifford British Smaller Companies B Inc15.6416.0285.07184.610.81Buy
BlackRock UK Smaller Companies D Inc21.2129.08105.34416.401.07Buy
CF Miton UK Smaller Companies B Inc15.5315.74-173.110.63Buy
Cavendish AIM B41.9938.99107.7949.430.60Buy
Franklin UK Smaller Companies W Inc9.5023.9587.48260.590.96Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc22.2338.96114.45587.561.02Buy
Investec UK Smaller Companies I Inc GBP6.797.1087.26339.371.87Buy
JPM UK Smaller Companies C Inc10.0716.0082.41120.411.05Buy
L&G UK Smaller Companies Trust I Inc8.9517.7590.23327.891.40Buy
Lazard UK Smaller Companies A Inc16.2718.9778.4359.131.60Buy
Lazard UK Smaller Companies C Inc16.5919.8279.7359.13-Buy
Liontrust UK Smaller Companies I Inc24.4744.38141.59640.970.25Buy
M&G Smaller Companies I Inc GBP12.1519.8374.94392.932.37Buy
Old Mutual UK Smaller Companies P Inc GBP25.7939.92124.92996.850.42Buy
Old Mutual UK Smaller Companies R Inc GBP26.2641.58127.69996.850.72Buy
R&M UK Equity Smaller Companies B Inc17.1036.30177.69767.211.05Buy
Schroder Institutional UK Smaller Companies Inst Inc22.3739.30121.70402.001.46Buy
Schroder UK Dynamic Smaller Companies Z Inc27.7723.85131.90536.700.70Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord19.736.27111.58-14.631,388.03Buy
Aberforth Geared Income Trust Plc Ord 1P34.3447.93193.84-8.47246.64Buy
Aberforth Geared Income Trust Plc ZDP 1P3.9412.8328.920.88156.87Buy
Athelney Trust PLC Ord 25p6.4327.53143.77-7.01259.70Buy
BlackRock Smaller Companies IT20.8021.91115.15-18.461,269.29Buy
BlackRock Throgmorton Trust PLC24.5131.69113.12-18.46466.02Buy
Chelverton Growth Trust plc40.0060.92169.23-6.5374.89Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p20.6010.7181.89-16.38269.06Buy
Gresham House Strategic Plc 50P5.75-9.1154.34-22.601,069.10Buy
Henderson Smaller Companies Investment Trust Ord18.5225.35142.09-16.67832.80Buy
Invesco Perpetual UK Smaller Companies plc29.0955.35150.08-3.23469.15Buy
JP Morgan Smaller Cos IT plc9.726.9990.23-18.611,083.67Buy
JP Morgan Smaller Cos IT plc Sub Shs 0.1p-62.14----Buy
Miton UK MicroCap Trust PLC Ord11.35---1.0062.12Buy
Montanaro UK Smaller Companies IT PLC11.722.8454.18-18.84624.69Buy
Rights & Issues Investment Trust Inc58.9283.74212.72--Buy
River And Mercantile UK Micro Cap30.74---3.66156.73Buy
SVM UK Emerging4.4012.9918.64-28.2990.99Buy
Standard Life UK Smaller Companies Trust PLC17.7426.97107.38-6.57422.53Buy
Strategic Equity Capital plc2.9130.82150.14-13.70237.54Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC2.4515.4650.87--7.72VCT GeneralistBuy
Albion Enterprise VCT PLC9.6124.3567.22--5.26VCT GeneralistBuy
Albion VCT PLC8.5624.4841.55--7.46VCT GeneralistBuy
Albion Technology & General VCT-7.47-0.8623.14--7.54VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P23.9716.8848.13--5.20VCT AIM QuotedBuy
Amati VCT Plc20.4911.5428.26--6.41VCT AIM QuotedBuy
Artemis VCT PLC O Inc40.7675.88188.70--18.05VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P9.9523.5773.04--22.79VCT GeneralistBuy
Baronsmead Venture Trust PLC9.0224.6376.91--21.56VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P14.5729.3457.83--7.56VCT GeneralistBuy
British Smaller Companies VCT10.0937.1168.48--28.03VCT GeneralistBuy
Chrysalis VCT PLC16.2795.99122.23--8.13VCT GeneralistBuy
Crown Place VCT6.5620.6949.78--7.02VCT GeneralistBuy
Downing One VCT PLC Ord1P3.0111.2944.57--6.96VCT AIM QuotedBuy
Downing TWO VCT plc A-103.82103.62---VCT GeneralistBuy
Downing TWO VCT plc C--39.17-29.33---VCT GeneralistBuy
Downing TWO VCT plc D51.9452.9344.17---VCT GeneralistBuy
Downing TWO VCT plc E-0.404,905.004,905.00---VCT GeneralistBuy
Downing TWO VCT plc F-4.14-5.37-14.35--8.06VCT GeneralistBuy
Downing TWO VCT plc G-3.95-7.09---6.76VCT GeneralistBuy

Disclaimer

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Unicorn UK Smaller Companies B

The Unicorn UK Smaller Companies fund aims to achieve long-term capital growth by investing predominantly in shares in smaller UK companies where a smaller company is defined as a constituent of the Numis Smaller Companies Index.

6 Months

Fund

Sector

1 Year

Fund

Sector

5 Years

Fund

Sector

Fund Size (£M)45.36
Fund ManagerSimon Moon
Fund Yield1.77%
Fund SectorUK Smaller Companies