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 B22.5132.40134.7748.571.65Buy
AXA Framlington UK Smaller Cos Z Acc22.8152.92154.07305.780.87Buy
Aberdeen UK Smaller Companies Equity I Acc21.7627.3191.19328.391.80Buy
Aberforth UK Small Companies25.5427.83112.77261.27-Buy
Artemis UK Smaller Companies I Acc30.1145.36111.89403.021.60Buy
Aviva Inv UK Smaller Companies 214.5325.0994.7340.940.84Buy
Baillie Gifford British Smaller Companies B Acc19.3325.3488.92190.080.81Buy
BlackRock UK Smaller Companies D Acc30.1242.13116.22423.700.99Buy
CF Miton UK Smaller Companies B Acc15.6519.23-176.820.61Buy
F&C UK Smaller Companies 2 Acc21.6543.84130.0033.651.00Buy
FP Octopus UK Micro Cap Growth P Acc31.4424.5782.2423.27-Buy
Franklin UK Smaller Companies W Acc16.8534.62105.82255.271.17Buy
Henderson UK & Irish Smaller Companies I Acc17.4613.6675.68172.220.50Buy
Henderson UK Smaller Companies I Acc24.9042.13128.49141.311.40Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc29.6054.88130.38600.990.93Buy
Investec UK Smaller Companies I Acc GBP14.9817.3998.30344.761.76Buy
JPM UK Smaller Companies C Acc20.0625.7091.56130.651.31Buy
Jupiter UK Smaller Companies I Acc30.5749.57110.02103.620.50Buy
Kames UK Smaller Companies D Acc15.1031.4999.50280.001.08Buy
Kames UK Smaller Companies B Acc15.3832.37101.56280.001.30Buy
L&G UK Smaller Companies Trust I Acc11.5323.6294.25334.741.40Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B22.5132.40134.7748.571.65Buy
AXA Framlington UK Smaller Cos Z Inc22.8853.00154.20305.780.88Buy
Aberforth UK Small Companies Inc25.5827.98113.17261.272.49Buy
Baillie Gifford British Smaller Companies B Inc19.3425.3488.85190.080.81Buy
BlackRock UK Smaller Companies D Inc30.1142.15118.28423.700.99Buy
CF Miton UK Smaller Companies B Inc15.6519.22-176.820.61Buy
Cavendish AIM B42.5649.29118.2251.150.60Buy
Franklin UK Smaller Companies W Inc16.8333.94102.08255.271.18Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc29.6054.87130.37600.990.94Buy
Investec UK Smaller Companies I Inc GBP14.9917.4098.23344.761.80Buy
JPM UK Smaller Companies C Inc20.0725.6791.39130.651.33Buy
L&G UK Smaller Companies Trust I Inc11.4523.5794.02334.741.40Buy
Lazard UK Smaller Companies A Inc19.2327.5187.2261.641.60Buy
Lazard UK Smaller Companies C Inc19.5028.3788.5661.64-Buy
Liontrust UK Smaller Companies I Inc27.7552.24153.30687.920.23Buy
M&G Smaller Companies I Inc GBP22.5033.7292.97404.502.22Buy
Old Mutual UK Smaller Companies P Inc GBP34.2955.59138.021,076.470.40Buy
Old Mutual UK Smaller Companies R Inc GBP34.7957.40141.211,076.470.69Buy
R&M UK Equity Smaller Companies B Inc24.3645.07194.44801.261.12Buy
Schroder Institutional UK Smaller Companies Inst Inc28.1148.82130.87423.171.38Buy
Schroder UK Dynamic Smaller Companies Z Inc35.6737.41145.55597.720.66Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord23.1319.76135.79-12.011,442.14Buy
Aberforth Geared Income Trust Plc Ord 1P41.1966.03225.04-5.03259.70Buy
Aberforth Geared Income Trust Plc ZDP 1P3.7612.1130.180.41157.85Buy
Athelney Trust PLC Ord 25p11.0514.06153.280.24251.40Buy
BlackRock Smaller Companies IT30.8543.14143.77-14.971,354.17Buy
BlackRock Throgmorton Trust PLC25.5041.73133.04-19.21497.12Buy
Chelverton Growth Trust plc5.2664.71169.231.7768.78Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p15.8311.8289.13-21.02279.67Buy
Gresham House Strategic Plc 50P7.57-12.6164.49-25.091,138.10Buy
Henderson Smaller Companies Investment Trust Ord22.6141.07162.51-15.56875.80Buy
Invesco Perpetual UK Smaller Companies plc30.4465.49174.713.77470.29Buy
JP Morgan Smaller Cos IT plc12.5219.50100.80-19.121,135.08Buy
JP Morgan Smaller Cos IT plc Sub Shs 0.1p-65.28----Buy
Miton UK MicroCap Trust PLC Ord6.01---2.0663.56Buy
Montanaro UK Smaller Companies IT PLC9.8510.3761.93-21.27656.66Buy
Rights & Issues Investment Trust Inc52.2487.99226.55--Buy
River And Mercantile UK Micro Cap36.86---1.81164.48Buy
SVM UK Emerging20.4928.3833.64-22.0294.25Buy
Standard Life UK Smaller Companies Trust PLC24.4542.63116.83-5.61445.78Buy
Strategic Equity Capital plc6.5136.78161.28-13.45246.68Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC6.8019.5044.3670.70-4.536.67VCT GeneralistBuy
Albion Enterprise VCT PLC12.0624.3576.7799.94-4.945.26VCT GeneralistBuy
Albion VCT PLC8.5624.4848.0473.00-8.227.46VCT GeneralistBuy
Albion Technology & General VCT1.652.8244.8871.60-4.334.74VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P23.3025.4458.65138.08-7.484.89VCT AIM QuotedBuy
Amati VCT Plc23.9921.0538.7481.99-7.615.94VCT AIM QuotedBuy
Artemis VCT PLC O Inc34.8680.51195.9277.56-12.3317.65VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P9.6323.2271.6291.56-4.4322.86VCT GeneralistBuy
Baronsmead Venture Trust PLC9.6725.3876.9688.23-4.7921.43VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P0.7024.0446.1059.70-6.206.25VCT GeneralistBuy
British Smaller Companies VCT6.0738.7675.6798.60-19.8827.85VCT GeneralistBuy
Chrysalis VCT PLC17.1645.48118.2080.80-22.658.00VCT GeneralistBuy
Crown Place VCT8.4222.8152.4130.84-5.976.90VCT GeneralistBuy
Downing One VCT PLC Ord1P2.249.8447.4593.50-8.967.05VCT AIM QuotedBuy
Downing TWO VCT plc D51.9452.9344.1734.80-84.20-VCT GeneralistBuy
Downing TWO VCT plc E-4,905.004,905.000.104,905.00-VCT GeneralistBuy
Downing TWO VCT plc F3.23-5.37-14.3570.00-11.438.06VCT GeneralistBuy
Downing TWO VCT plc G-1.54-7.09-85.40-13.356.76VCT GeneralistBuy
Downing TWO VCT plc K 0.1P5.00--99.705.32-VCT Generalist Pre QualifyingBuy
Downing Three VCT plc D51.9436.9928.6734.70-84.15-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.

6 Months

Fund

Sector

1 Year

Fund

Sector

5 Years

Fund

Sector

Fund Size (£M)48.57
Fund ManagerSimon Moon
Fund Yield1.65%
Fund SectorUK Smaller Companies