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 B32.6253.84149.3155.651.81Buy
AXA Framlington UK Smaller Cos Z Acc35.2072.84171.06321.210.90Buy
Aberdeen UK Smaller Companies Equity I Acc28.7751.9499.98134.931.40Buy
Aberforth UK Small Companies27.1439.30115.43247.93-Buy
Artemis UK Smaller Companies I Acc36.2369.18116.66463.381.46Buy
Aviva Inv UK Smaller Companies 224.7639.0098.6640.810.94Buy
Baillie Gifford British Smaller Companies B Acc17.5740.1892.11194.930.83Buy
BlackRock UK Smaller Companies D Acc35.0168.74129.28486.060.90Buy
CF Livingbridge UK Micro Cap C Acc30.2858.38165.1944.120.44Buy
CF Miton UK Smaller Companies B Acc21.4039.95-179.570.65Buy
F&C UK Smaller Companies 2 Acc30.6359.40134.5236.141.20Buy
FP Octopus UK Micro Cap Growth P Acc35.4548.2296.5528.67-Buy
Franklin UK Smaller Companies W Acc30.6056.97140.82287.081.10Buy
Henderson UK & Irish Smaller Companies I Acc23.2431.7279.23178.540.60Buy
Henderson UK Smaller Companies I Acc31.5160.24133.44149.341.40Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc31.5571.40139.55682.710.90Buy
Investec UK Smaller Companies I Acc GBP27.1139.53107.86317.121.61Buy
JPM UK Smaller Companies C Acc26.0746.82107.37135.591.23Buy
Jupiter UK Smaller Companies I Acc41.1991.69153.23182.110.40Buy
Kames UK Smaller Companies D Acc32.3157.17115.15307.001.26Buy
Kames UK Smaller Companies B Acc32.6458.22117.69307.001.46Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B32.6253.84149.3155.651.81Buy
AXA Framlington UK Smaller Cos Z Inc35.1372.80171.00321.210.90Buy
Aberforth UK Small Companies Inc27.1939.48115.83247.932.46Buy
Baillie Gifford British Smaller Companies B Inc17.5540.1691.97194.930.83Buy
BlackRock UK Smaller Companies D Inc34.9768.72129.22486.060.90Buy
CF Livingbridge UK Micro Cap C Inc30.2958.34165.1144.120.47Buy
CF Miton UK Smaller Companies B Inc21.4139.95-179.570.66Buy
Castlefield UK Smaller Companies Inst Inc36.0768.11114.086.09-Buy
Franklin UK Smaller Companies W Inc30.6056.82137.27287.081.11Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc31.5571.40139.55682.710.91Buy
Investec UK Smaller Companies I Inc GBP27.1039.53107.87317.121.64Buy
JPM UK Smaller Companies C Inc26.0646.80107.24135.591.25Buy
L&G UK Smaller Companies Trust I Inc19.4137.0395.49351.101.40Buy
Lazard UK Smaller Companies A Inc22.7342.7096.6068.321.60Buy
Lazard UK Smaller Companies C Inc23.0143.6698.9168.32-Buy
Liontrust UK Smaller Companies I Inc29.4276.46140.95777.050.09Buy
M&G Smaller Companies I Inc GBP29.2950.83106.19451.752.24Buy
Old Mutual UK Smaller Companies P Inc GBP38.1782.04-1,300.200.29Buy
Old Mutual UK Smaller Companies R Inc GBP38.7184.12159.911,300.200.59Buy
R&M UK Equity Smaller Companies B Inc29.1061.64177.40858.820.99Buy
Schroder Institutional UK Smaller Companies Inst Inc34.8973.29143.56458.551.25Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord33.7532.61126.40-12.591,491.89Buy
Aberforth Split Level Income Trust PLC Ord 1P----2.20100.97Buy
Aberforth Split Level Income Trust PLC ZDP 1P---8.02100.68Buy
Athelney Trust PLC Ord 25p22.5925.44130.21-10.32283.80Buy
BlackRock Smaller Companies IT52.2973.57164.90-10.531,449.69Buy
BlackRock Throgmorton Trust PLC49.2182.14164.07-12.69538.03Buy
Chelverton Growth Trust plc-42.1749.44135.40-17.2480.35Buy
Downing Strategic Micro-Cap Investment Trust Plc Red Ord GBP0.001---3.3994.79Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p37.0852.2080.62-15.75308.45Buy
Gresham House Strategic Plc 50P12.42-10.65-1.06-21.981,070.30Buy
Henderson Smaller Companies Investment Trust Ord38.3268.85172.93-10.42942.20Buy
Invesco Perpetual UK Smaller Companies plc30.2378.97163.23-5.34523.73Buy
JP Morgan Smaller Cos IT plc36.9546.89123.93-17.151,237.20Buy
Miton UK MicroCap Trust PLC Ord17.42---4.5664.83Buy
Montanaro UK Smaller Companies IT PLC34.3638.5170.07-17.89704.53Buy
Rights & Issues Investment Trust Inc34.45133.65228.21-12.932,394.67Buy
River And Mercantile UK Micro Cap63.95--1.95187.35Buy
SVM UK Emerging38.8476.84115.38-26.13113.72Buy
Standard Life UK Smaller Companies Trust PLC37.5486.39126.74-0.69488.37Buy
Strategic Equity Capital plc21.0827.66158.02-12.08262.17Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC11.2519.8049.0771.30-3.935.84VCT GeneralistBuy
Albion Enterprise VCT PLC14.6525.8372.07100.78-5.495.25VCT GeneralistBuy
Albion VCT PLC17.7430.3749.8675.70-8.857.25VCT GeneralistBuy
Albion Technology & General VCT8.223.8633.6371.10-4.715.90VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P47.7367.7293.40164.93-10.725.09VCT AIM QuotedBuy
Amati VCT Plc50.1058.6972.3498.08-10.535.13VCT AIM QuotedBuy
Artemis VCT PLC O Inc41.25128.01254.3669.83-9.069.45VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P5.6328.7267.0094.16-4.683.34VCT GeneralistBuy
Baronsmead Venture Trust PLC6.6430.3968.5191.58-4.463.43VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P-0.1022.1545.7760.40-8.945.45VCT GeneralistBuy
British Smaller Companies VCT1.8632.7664.3976.55-4.6430.48VCT GeneralistBuy
Calculus VCT PLC ORD 1P-34.46--20.55204.146.80VCT Generalist Pre QualifyingBuy
Chrysalis VCT PLC1.7830.02120.0384.30-31.798.70VCT GeneralistBuy
Crown Place VCT18.9421.4547.9230.98-6.796.93VCT GeneralistBuy
Downing One VCT PLC Ord1P5.0220.2058.7788.80-5.268.92VCT GeneralistBuy
Downing TWO VCT plc D164.85185.54218.6036.60-68.58-VCT GeneralistBuy
Downing TWO VCT plc E--0.404,905.000.104,905.00-VCT GeneralistBuy
Downing TWO VCT plc F-17.61-17.64-27.7969.70-28.2610.00VCT GeneralistBuy
Downing TWO VCT plc G0.06-2.18-83.50-10.186.67VCT GeneralistBuy
Downing TWO VCT plc K 0.1P-4.76--98.401.63-VCT Generalist Pre QualifyingBuy

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. In addition, the fund may invest up to 20% of the portfolio value in companies not included in the above, including those listed on the Alternative Investment Market.

6 Months

Fund

Sector

1 Year

Fund

Sector

5 Years

Fund

Sector

Fund Size (£M)55.65
Fund ManagerSimon Moon
Fund Yield1.81%
Fund SectorUK Smaller Companies