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 B16.1023.87134.1946.001.77Buy
AXA Framlington UK Smaller Cos Z Acc11.5236.36147.32286.020.94Buy
Aberdeen UK Smaller Companies Equity I Acc16.2413.8898.05299.142.10Buy
Aberforth UK Small Companies13.6914.48119.39210.38-Buy
Artemis UK Smaller Companies I Acc17.7130.01107.82376.261.77Buy
Aviva Inv UK Smaller Companies 25.3011.29102.6841.050.80Buy
Baillie Gifford British Smaller Companies B Acc18.0513.41112.43194.041.02Buy
BlackRock UK Smaller Companies D Acc17.2722.08113.73400.181.10Buy
CF Miton UK Smaller Companies B Acc9.8221.02-160.600.65Buy
F&C UK Smaller Companies 2 Acc12.5526.56130.5930.941.10Buy
Franklin UK Smaller Companies W Acc5.0020.61101.38274.081.23Buy
Henderson UK & Irish Smaller Companies I Acc10.336.8980.80164.070.50Buy
Henderson UK Smaller Companies I Acc17.4926.92135.21133.601.50Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc20.0538.93129.23566.331.03Buy
Investec UK Smaller Companies I Acc GBP4.645.7198.54357.401.92Buy
JPM UK Smaller Companies C Acc4.8212.3598.39113.471.44Buy
Jupiter UK Smaller Companies I Acc29.4435.59119.3687.390.60Buy
Kames UK Smaller Companies D Acc5.2713.8095.85266.001.16Buy
Kames UK Smaller Companies B Acc5.5314.5797.74266.001.40Buy
L&G UK Smaller Companies Trust I Acc4.7812.3197.24321.771.50Buy
Liontrust UK Micro Cap I Acc---14.32-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B16.1023.87134.1946.001.77Buy
AXA Framlington UK Smaller Cos Z Inc11.5436.42147.41286.020.95Buy
Aberforth UK Small Companies Inc13.7114.60119.77210.382.73Buy
Baillie Gifford British Smaller Companies B Inc18.0413.37112.25194.041.02Buy
BlackRock UK Smaller Companies D Inc17.2722.09112.31400.181.10Buy
CF Miton UK Smaller Companies B Inc9.8321.02-160.600.65Buy
Cavendish AIM B39.5940.29116.9145.720.60Buy
Franklin UK Smaller Companies W Inc5.0019.7897.72274.080.99Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc20.0538.93129.23566.331.05Buy
Investec UK Smaller Companies I Inc GBP4.655.7298.89357.401.96Buy
JPM UK Smaller Companies C Inc4.8012.3498.21113.471.47Buy
L&G UK Smaller Companies Trust I Inc4.7712.3297.14321.771.50Buy
Lazard UK Smaller Companies Inst Inc16.8919.09100.0658.811.60Buy
Lazard UK Smaller Companies Ret C Inc17.1519.95101.0858.81-Buy
Liontrust UK Smaller Companies I Inc17.5943.71156.41569.580.26Buy
M&G Smaller Companies I Inc GBP9.6913.2692.57386.102.49Buy
Old Mutual UK Smaller Companies P Inc GBP19.8632.17135.35928.310.47Buy
Old Mutual UK Smaller Companies R Inc GBP20.3033.72137.69928.310.81Buy
R&M UK Equity Smaller Companies B Inc13.6631.83190.10718.311.10Buy
Schroder Institutional UK Smaller Companies Inst Inc19.3133.04129.89401.851.22Buy
Schroder UK Dynamic Smaller Companies Z Inc17.9214.73139.03472.310.76Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord4.135.50139.81-16.181,331.35Buy
Aberforth Geared Income Trust Plc ZDP 1P2.3514.7535.481.61155.00Buy
Aberforth Geared Income Trust Plc Ord 1P13.7531.29222.49-10.82230.43Buy
Athelney Trust PLC Ord 25p12.8634.89140.17-2.04250.60Buy
BlackRock Smaller Companies IT9.7314.00148.81-15.681,193.96Buy
BlackRock Throgmorton Trust PLC10.1311.75137.50-19.43440.59Buy
Chelverton Growth Trust plc29.0336.36150.00-19.3874.42Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p12.12-2.6097.02-20.59260.50Buy
Gresham House Strategic Plc 50P-1.24-5.9756.08-28.991,119.50Buy
Henderson Smaller Companies Investment Trust Ord7.5623.47177.05-16.74803.50Buy
Invesco Perpetual UK Smaller Companies plc17.8342.56165.32-7.63457.96Buy
JP Morgan Smaller Cos IT plc-1.233.56113.47-19.721,038.80Buy
JP Morgan Smaller Cos IT plc Sub Shs 0.1p-80.34----Buy
Miton UK MicroCap Trust PLC Ord3.93---4.6759.40Buy
Montanaro UK Smaller Companies IT PLC-6.11-6.2364.65-22.20602.20Buy
Rights & Issues Investment Trust Inc49.5187.74266.79--Buy
River And Mercantile UK Micro Cap10.74---8.38146.25Buy
SVM UK Emerging-8.638.5519.81-23.1282.60Buy
Standard Life UK Smaller Companies Trust PLC11.6715.15115.99-7.23401.81Buy
Standard Life UK Smaller Companies Trust PLC 3.5% Convertible Unsecured Loan Stock 20181.207.6941.35--Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC2.4715.9049.03--7.69VCT GeneralistBuy
Albion Enterprise VCT PLC6.7923.9559.59--5.41VCT GeneralistBuy
Albion VCT PLC8.5624.4845.81--7.46VCT GeneralistBuy
Albion Technology & General VCT-7.05-0.0719.22--7.36VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P12.9712.3050.05--5.57VCT AIM QuotedBuy
Amati VCT Plc7.6213.9333.17--6.79VCT AIM QuotedBuy
Artemis VCT PLC O Inc44.9993.61265.74--17.52VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P3.1123.4367.66--19.65VCT GeneralistBuy
Baronsmead Venture Trust PLC2.3426.2674.51--18.02VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P12.6527.1753.45--7.69VCT GeneralistBuy
British Smaller Companies VCT23.1645.3867.72--27.71VCT GeneralistBuy
Chrysalis VCT PLC12.4396.45138.88--7.94VCT GeneralistBuy
Crown Place VCT8.4021.4659.44--7.89VCT GeneralistBuy
Downing One VCT PLC Ord1P2.4510.0247.00--6.77VCT AIM QuotedBuy
Downing TWO VCT plc A36.10103.82103.62---VCT GeneralistBuy
Downing TWO VCT plc C1.51-39.17-29.33---VCT GeneralistBuy
Downing TWO VCT plc E-0.404,905.004,905.00---VCT GeneralistBuy
Downing TWO VCT plc D26.4015.2113.82---VCT GeneralistBuy
Downing TWO VCT plc F-4.14-5.37---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)46.00
Fund ManagerSimon Moon
Fund Yield1.77%
Fund SectorUK Smaller Companies