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 B12.5546.91109.5957.911.77Buy
AXA Framlington UK Smaller Cos Z Acc16.9358.08139.52308.720.92Buy
Aberdeen UK Smaller Companies Equity I Acc20.9844.0487.46107.521.40Buy
Aberforth UK Small Companies10.8232.5491.15265.30-Buy
Artemis UK Smaller Companies I Acc12.2758.6192.07445.001.91Buy
Aviva Inv UK Smaller Companies 215.4131.4778.5942.640.91Buy
Baillie Gifford British Smaller Companies B Acc7.4526.0469.41193.950.60Buy
BlackRock UK Smaller Companies D Acc19.0059.34111.06508.370.92Buy
Elite Webb Capital Smaller Companies Income & Growth Acc34.0837.87119.633.211.71Buy
F&C UK Smaller Companies 2 Acc17.9551.52113.5737.971.10Buy
FP Octopus UK Micro Cap Growth P Acc20.9164.1592.3433.09-Buy
Franklin UK Smaller Companies W Acc17.4047.20115.12308.041.03Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc11.9555.28113.58646.420.87Buy
Investec UK Smaller Companies I Acc GBP16.4240.1695.51311.571.52Buy
JPM UK Smaller Companies C Acc16.2141.8782.06166.691.21Buy
Janus Henderson UK & Irish Smaller Companies I Acc12.1828.5360.90179.631.20Buy
Janus Henderson UK Smaller Companies I Acc16.2045.21106.70163.751.40Buy
Jupiter UK Smaller Companies I Acc35.5993.99152.60296.950.70Buy
Kames UK Smaller Companies D Acc17.4441.5388.62312.001.29Buy
Kames UK Smaller Companies B Acc17.7442.5090.85312.001.49Buy
L&G UK Smaller Companies Trust I Acc10.3826.7775.78330.141.30Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B12.5546.91109.5957.911.77Buy
AXA Framlington UK Smaller Cos Z Inc16.9257.97139.49308.720.92Buy
Aberforth UK Small Companies Inc10.8732.7191.53265.302.57Buy
Baillie Gifford British Smaller Companies B Inc7.4526.0369.35193.950.60Buy
BlackRock UK Smaller Companies D Inc19.0559.44111.18508.370.92Buy
Castlefield B.E.S.T Sustainable UK Smaller Companies Inst Inc15.7752.0987.297.66-Buy
Elite Webb Capital Smaller Companies Income & Growth Inc33.4937.07118.393.211.71Buy
Franklin UK Smaller Companies W Inc17.4047.55112.58308.041.04Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc11.9655.29113.58646.420.88Buy
Investec UK Smaller Companies I Inc GBP16.4140.1595.55311.571.55Buy
JPM UK Smaller Companies C Inc16.2241.8782.02166.691.23Buy
L&G UK Smaller Companies Trust I Inc10.4026.7975.79330.141.30Buy
LF Livingbridge UK Micro Cap C Inc21.5856.61153.60112.300.39Buy
LF Miton UK Smaller Companies B Inc11.9546.10122.79177.950.63Buy
Lazard UK Smaller Companies A Inc9.6429.4275.5944.691.60Buy
Lazard UK Smaller Companies C Inc9.9330.3677.6444.69-Buy
Liontrust UK Smaller Companies I Inc15.1075.39137.43852.160.09Buy
M&G Smaller Companies I Inc GBP11.9543.4577.68434.042.18Buy
Old Mutual UK Smaller Companies P Inc GBP15.7466.31124.301,355.780.31Buy
Old Mutual UK Smaller Companies R Inc GBP16.1968.18128.701,355.780.61Buy
R&M UK Equity Smaller Companies B Inc9.7647.54136.74645.920.96Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord13.4738.8098.09-11.591,565.37Buy
Aberforth Split Level Income Trust PLC Ord 1P----7.11104.85Buy
Aberforth Split Level Income Trust PLC ZDP 1P---6.11102.25Buy
Athelney Trust PLC Ord 25p4.1140.9766.88-4.47259.60Buy
BlackRock Smaller Companies IT26.5582.62147.71-8.491,557.28Buy
BlackRock Throgmorton Trust PLC32.0386.18147.31-9.39571.66Buy
Chelverton Growth Trust plc-7.8657.3282.98-18.6479.28Buy
Downing Strategic Micro-Cap Investment Trust Plc Red Ord GBP0.001---1.7689.43Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p27.5849.9567.36-17.71331.74Buy
Gresham House Strategic Plc 50P-3.3224.62-13.44-31.551,208.90Buy
Henderson Smaller Companies Investment Trust Ord23.3857.36131.08-11.951,008.50Buy
Invesco Perpetual UK Smaller Companies plc10.8962.60133.37-5.11541.67Buy
JP Morgan Smaller Cos IT plc33.3857.38104.39-14.611,373.10Buy
Miton UK MicroCap Trust PLC Ord8.38---2.9768.02Buy
Montanaro UK Smaller Companies IT PLC12.0322.2941.84-20.91710.61Buy
Rights & Issues Investment Trust Inc8.57104.43207.69-11.422,325.63Buy
River And Mercantile UK Micro Cap11.3266.98--10.82198.48Buy
SVM UK Emerging25.5153.75113.29-17.67112.05Buy
Standard Life UK Smaller Companies Trust PLC17.2976.20103.66-6.02518.22Buy
Strategic Equity Capital plc8.9014.45118.16-14.92261.51Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC9.1123.3139.9071.80-3.203.17VCT GeneralistBuy
Albion Enterprise VCT PLC4.1526.0750.25101.38-7.285.32VCT GeneralistBuy
Albion VCT PLC7.2727.3641.0072.00-6.947.46VCT GeneralistBuy
Albion Technology & General VCT2.554.1316.6869.90-3.795.95VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P31.8482.9995.53168.33-5.255.33VCT AIM QuotedBuy
Amati VCT Plc33.5271.2691.39101.16-5.354.70VCT AIM QuotedBuy
Artemis VCT PLC O Inc57.44176.82326.4468.545.055.56VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P2.8324.2645.1889.55-4.525.26VCT GeneralistBuy
Baronsmead Venture Trust PLC4.1226.5350.8488.01-4.567.74VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P2.7323.2636.4758.80-7.315.50VCT GeneralistBuy
British Smaller Companies VCT2.7731.1267.8878.40-9.4413.73VCT GeneralistBuy
Chrysalis VCT PLC15.4227.3294.6380.00-21.888.00VCT GeneralistBuy
Crown Place VCT PLC Ord 1P7.4222.5643.1530.47-4.506.87VCT GeneralistBuy
Downing One VCT PLC Ord1P4.7515.7650.1089.30-8.739.20VCT GeneralistBuy
Downing TWO VCT plc D1,124.921,775.901,853.2723.88-72.78-VCT GeneralistBuy
Downing TWO VCT plc E2.001.595,005.000.104,905.00-VCT GeneralistBuy
Downing TWO VCT plc F-27.48-31.42-32.1869.60-64.0820.00VCT GeneralistBuy
Downing TWO VCT plc G-7.53-13.16-14.0882.10-22.0511.72VCT GeneralistBuy
Downing Three VCT plc D377.09612.93634.4523.69-89.24-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

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Sector

1 Year

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Sector

5 Years

Fund

Sector

Fund Size (£M)57.91
Fund ManagerSimon Moon
Fund Yield1.77%
Fund SectorUK Smaller Companies