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 B18.8348.67115.3356.481.80Buy
AXA Framlington UK Smaller Cos Z Acc22.0059.66133.64301.800.88Buy
Aberdeen UK Smaller Companies Equity I Acc16.9942.6675.89105.881.40Buy
Aberforth UK Small Companies7.6428.0677.72241.07-Buy
Artemis UK Smaller Companies I Acc19.3065.5796.60476.481.92Buy
Aviva Inv UK Smaller Companies 216.2833.5177.3841.430.91Buy
Baillie Gifford British Smaller Companies B Acc8.2527.3869.41189.820.84Buy
BlackRock UK Smaller Companies D Acc22.3461.53103.38494.760.89Buy
F&C UK Smaller Companies 2 Acc20.2252.71108.0536.321.10Buy
FP Octopus UK Micro Cap Growth P Acc23.8355.3384.6030.72-Buy
Franklin UK Smaller Companies W Acc20.9447.90114.86302.001.05Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc17.4157.65113.67682.300.90Buy
Investec UK Smaller Companies I Acc GBP18.5940.8292.22305.901.50Buy
JPM UK Smaller Companies C Acc17.7541.4574.33158.951.28Buy
Janus Henderson UK & Irish Smaller Companies I Acc15.4032.4661.42180.801.10Buy
Janus Henderson UK Smaller Companies I Acc16.7946.88100.69151.581.40Buy
Jupiter UK Smaller Companies I Acc36.6997.93144.98271.230.80Buy
Kames UK Smaller Companies D Acc17.2943.5185.09312.001.25Buy
Kames UK Smaller Companies B Acc17.5844.4887.29312.001.45Buy
L&G UK Smaller Companies Trust I Acc11.3228.5173.04349.161.30Buy
LF Livingbridge UK Micro Cap C Acc20.7357.72148.49109.310.37Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B18.8348.67115.3356.481.80Buy
AXA Framlington UK Smaller Cos Z Inc22.0059.67133.65301.800.89Buy
Aberforth UK Small Companies Inc7.6928.2378.07241.072.78Buy
Baillie Gifford British Smaller Companies B Inc8.2727.3669.37189.820.84Buy
BlackRock UK Smaller Companies D Inc22.2961.48103.33494.760.89Buy
Castlefield B.E.S.T Sustainable UK Smaller Companies Inst Inc18.0258.7681.856.78-Buy
Franklin UK Smaller Companies W Inc20.9348.06112.07302.001.07Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc17.4157.65113.68682.300.90Buy
Investec UK Smaller Companies I Inc GBP18.5740.8092.21305.901.52Buy
JPM UK Smaller Companies C Inc17.7341.4474.27158.951.29Buy
L&G UK Smaller Companies Trust I Inc11.2828.4272.88349.161.30Buy
LF Livingbridge UK Micro Cap C Inc20.7457.67148.42109.310.41Buy
LF Miton UK Smaller Companies B Inc15.8246.29121.28186.040.63Buy
Lazard UK Smaller Companies A Inc10.2433.0170.6351.421.60Buy
Lazard UK Smaller Companies C Inc10.5533.9572.6551.42-Buy
Liontrust UK Smaller Companies I Inc20.7474.28130.40815.230.09Buy
M&G Smaller Companies I Inc GBP17.6744.6276.70455.822.18Buy
Old Mutual UK Smaller Companies P Inc GBP24.2773.60127.811,393.470.29Buy
Old Mutual UK Smaller Companies R Inc GBP24.7375.54132.241,393.470.59Buy
R&M UK Equity Smaller Companies B Inc16.3254.42138.18817.000.98Buy
Schroder Institutional UK Smaller Companies Inst Inc20.4064.77114.73458.071.26Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord12.0631.2086.12-10.751,438.67Buy
Aberforth Split Level Income Trust PLC Ord 1P----2.0698.02Buy
Aberforth Split Level Income Trust PLC ZDP 1P---6.30101.60Buy
Athelney Trust PLC Ord 25p9.6847.86135.19-6.94279.40Buy
BlackRock Smaller Companies IT31.4575.78140.72-8.591,482.41Buy
BlackRock Throgmorton Trust PLC27.3075.16133.59-12.73548.84Buy
Chelverton Growth Trust plc-23.0353.0185.40-22.1881.60Buy
Downing Strategic Micro-Cap Investment Trust Plc Red Ord GBP0.001----0.7093.05Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p20.2651.8264.79-12.70305.83Buy
Gresham House Strategic Plc 50P1.651.35-10.92-28.351,148.00Buy
Henderson Smaller Companies Investment Trust Ord21.2462.22132.07-9.23951.90Buy
Invesco Perpetual UK Smaller Companies plc13.9867.81136.12-5.04523.93Buy
JP Morgan Smaller Cos IT plc32.3556.39100.24-12.451,287.80Buy
Miton UK MicroCap Trust PLC Ord7.83---2.5967.55Buy
Montanaro UK Smaller Companies IT PLC11.0932.7549.56-18.00690.28Buy
Rights & Issues Investment Trust Inc10.44109.64209.13-16.122,372.35Buy
River And Mercantile UK Micro Cap25.9777.67--2.07195.04Buy
SVM UK Emerging39.0679.80119.75-23.55116.41Buy
Standard Life UK Smaller Companies Trust PLC31.6787.82115.031.05505.67Buy
Standard Life UK Smaller Companies Trust PLC 3.5% Cnv Unsec Loan Stock 201834.8576.0789.20--Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC12.1119.8041.9472.10-4.995.84VCT GeneralistBuy
Albion Enterprise VCT PLC5.8225.9356.46101.62-6.025.24VCT GeneralistBuy
Albion VCT PLC10.4730.1743.1274.10-6.887.25VCT GeneralistBuy
Albion Technology & General VCT11.504.4438.5973.70-8.755.95VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P34.9675.2087.51163.11-7.734.98VCT AIM QuotedBuy
Amati VCT Plc36.4064.1368.6398.38-8.775.01VCT AIM QuotedBuy
Artemis VCT PLC O Inc43.58160.82277.6473.26-2.405.59VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P6.7026.8449.4591.87-4.768.57VCT GeneralistBuy
Baronsmead Venture Trust PLC9.1329.8956.4093.76-8.287.56VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P-2.6919.9634.5257.90-5.875.50VCT GeneralistBuy
British Smaller Companies VCT-0.5528.4961.7577.00-4.557.82VCT GeneralistBuy
Chrysalis VCT PLC7.9936.8687.2280.00-27.508.62VCT GeneralistBuy
Crown Place VCT PLC Ord 1P7.4720.2941.6331.71-9.816.99VCT GeneralistBuy
Downing One VCT PLC Ord1P3.7014.4949.1289.30-8.459.17VCT GeneralistBuy
Downing TWO VCT plc D1,105.451,357.431,441.4423.88-78.85-VCT GeneralistBuy
Downing TWO VCT plc E2.001.595,005.000.104,905.00-VCT GeneralistBuy
Downing TWO VCT plc F-11.20-16.02-18.8270.00-28.5710.00VCT GeneralistBuy
Downing TWO VCT plc G4.03-2.30-82.50-12.736.94VCT GeneralistBuy
Downing Three VCT plc D504.32612.93646.0223.69-89.24-VCT GeneralistBuy
Downing Three VCT plc E-48.985,005.005,005.000.104,905.00-VCT 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. 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)56.48
Fund ManagerSimon Moon
Fund Yield1.80%
Fund SectorUK Smaller Companies