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 B29.6340.16146.1852.981.58Buy
AXA Framlington UK Smaller Cos Z Acc30.4065.29170.78316.330.64Buy
Aberdeen UK Smaller Companies Equity I Acc24.9938.8796.70148.371.50Buy
Aberforth UK Small Companies23.3434.22118.09272.23-Buy
Artemis UK Smaller Companies I Acc29.7753.44114.53427.211.54Buy
Aviva Inv UK Smaller Companies 219.9835.55100.9041.930.80Buy
Baillie Gifford British Smaller Companies B Acc18.1239.1794.17196.490.81Buy
BlackRock UK Smaller Companies D Acc29.6657.97134.23460.700.92Buy
CF Livingbridge UK Micro Cap C Acc29.6151.09185.5189.060.70Buy
CF Miton UK Smaller Companies B Acc17.5329.04-190.890.69Buy
F&C UK Smaller Companies 2 Acc27.1752.62139.6335.400.90Buy
FP Octopus UK Micro Cap Growth P Acc36.0246.06101.5325.65-Buy
Franklin UK Smaller Companies W Acc25.5445.00145.57276.151.11Buy
Henderson UK & Irish Smaller Companies I Acc24.6627.2887.58179.880.60Buy
Henderson UK Smaller Companies I Acc26.6252.11134.24148.051.50Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc29.4459.87138.22646.020.93Buy
Investec UK Smaller Companies I Acc GBP25.3432.77114.98331.561.58Buy
JPM UK Smaller Companies C Acc21.9233.94101.09132.301.27Buy
Jupiter UK Smaller Companies I Acc38.3170.44143.67134.770.50Buy
Kames UK Smaller Companies D Acc23.1648.46116.73327.001.35Buy
Kames UK Smaller Companies B Acc23.4749.45119.16327.001.56Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B29.6340.16146.1852.981.58Buy
AXA Framlington UK Smaller Cos Z Inc30.4165.32170.83316.330.64Buy
Aberforth UK Small Companies Inc23.3934.40118.50272.232.48Buy
Baillie Gifford British Smaller Companies B Inc18.1039.1294.00196.490.81Buy
BlackRock UK Smaller Companies D Inc29.6658.03137.09460.700.92Buy
CF Livingbridge UK Micro Cap C Inc29.6251.05185.4389.060.69Buy
CF Miton UK Smaller Companies B Inc17.5429.03-190.890.69Buy
Castlefield UK Smaller Companies Inst Inc30.2848.35104.986.03-Buy
Franklin UK Smaller Companies W Inc25.5244.61141.54276.151.12Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc29.4559.87138.22646.020.94Buy
Investec UK Smaller Companies I Inc GBP25.3632.79114.99331.561.61Buy
JPM UK Smaller Companies C Inc21.9033.93100.90132.301.29Buy
L&G UK Smaller Companies Trust I Inc12.9428.3494.15337.381.50Buy
Lazard UK Smaller Companies A Inc20.6335.0097.0864.001.60Buy
Lazard UK Smaller Companies C Inc20.9435.8799.2164.00-Buy
Liontrust UK Smaller Companies I Inc26.6467.07155.87745.860.10Buy
M&G Smaller Companies I Inc GBP28.4544.36105.35450.272.26Buy
Old Mutual UK Smaller Companies P Inc GBP38.4376.28164.621,245.380.38Buy
Old Mutual UK Smaller Companies R Inc GBP38.9678.29169.331,245.380.65Buy
R&M UK Equity Smaller Companies B Inc28.6554.27195.61852.661.05Buy
Schroder Institutional UK Smaller Companies Inst Inc35.1462.31140.65451.491.29Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord30.7226.27141.57-12.271,481.79Buy
Aberforth Split Level Income Trust PLC Ord 1P----6.79101.38Buy
Aberforth Split Level Income Trust PLC ZDP 1P---5.1699.85Buy
Athelney Trust PLC Ord 25p27.308.53146.95-6.84270.50Buy
BlackRock Smaller Companies IT43.1664.33170.31-13.081,417.44Buy
BlackRock Throgmorton Trust PLC42.9864.88171.96-14.25521.29Buy
Chelverton Growth Trust plc-19.2344.00133.33-21.7580.51Buy
Downing Strategic Micro-Cap Investment Trust Plc Red Ord GBP0.001---5.8596.60Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p20.6331.4494.92-19.42299.10Buy
Gresham House Strategic Plc 50P8.47-2.084.49-16.421,066.10Buy
Henderson Smaller Companies Investment Trust Ord34.8460.28184.50-13.77930.90Buy
Invesco Perpetual UK Smaller Companies plc31.3474.38176.91-4.72512.17Buy
JP Morgan Smaller Cos IT plc26.0036.30127.64-20.421,218.00Buy
Miton UK MicroCap Trust PLC Ord23.47---3.2764.61Buy
Montanaro UK Smaller Companies IT PLC18.5625.2060.77-19.59679.65Buy
Rights & Issues Investment Trust Inc46.61110.29278.31--Buy
River And Mercantile UK Micro Cap61.67--3.83176.73Buy
SVM UK Emerging29.1751.2268.48-25.27103.71Buy
Standard Life UK Smaller Companies Trust PLC25.3761.89119.45-6.69469.41Buy
Strategic Equity Capital plc8.3944.30174.38-14.65258.06Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC8.8320.5644.3074.00-7.436.57VCT GeneralistBuy
Albion Enterprise VCT PLC15.4426.7269.94101.80-4.725.15VCT GeneralistBuy
Albion VCT PLC14.7831.6653.0575.70-6.217.04VCT GeneralistBuy
Albion Technology & General VCT8.616.2451.2071.10-4.714.80VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P32.1247.3081.01148.74-6.725.05VCT AIM QuotedBuy
Amati VCT Plc34.9540.2068.5289.99-7.494.80VCT AIM QuotedBuy
Artemis VCT PLC O Inc46.01113.88210.9969.85-9.4518.97VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P8.3524.8368.2893.95-4.7414.53VCT GeneralistBuy
Baronsmead Venture Trust PLC11.2626.8375.2791.13-4.8113.26VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P1.5919.9933.6860.40-6.466.19VCT GeneralistBuy
British Smaller Companies VCT1.8627.6861.6782.30-11.3030.48VCT GeneralistBuy
Chrysalis VCT PLC9.7741.33130.3784.30-25.868.00VCT GeneralistBuy
Crown Place VCT16.0322.2857.2730.99-6.826.93VCT GeneralistBuy
Downing One VCT PLC Ord1P7.4611.9940.4692.40-9.909.01VCT AIM QuotedBuy
Downing TWO VCT plc D217.69241.63207.6136.60-68.58-VCT GeneralistBuy
Downing TWO VCT plc E--0.404,905.000.104,905.00-VCT GeneralistBuy
Downing TWO VCT plc F-10.72-10.58-20.5669.70-21.099.09VCT GeneralistBuy
Downing TWO VCT plc G0.06-2.18-83.50-10.186.67VCT GeneralistBuy
Downing TWO VCT plc K 0.1P-4.76--99.001.01-VCT Generalist Pre QualifyingBuy
Downing Three VCT plc D190.07171.59167.3236.40-71.15-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. 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

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Sector

5 Years

Fund

Sector

Fund Size (£M)52.98
Fund ManagerSimon Moon
Fund Yield1.58%
Fund SectorUK Smaller Companies