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 B4.0530.50102.9447.121.05Buy
AXA Framlington UK Smaller Cos Z Acc6.3451.91140.78282.510.99Buy
Aberdeen UK Smaller Companies Equity I Acc7.4921.1889.63299.962.10Buy
Aberforth UK Small Companies-0.0821.84107.27202.17-Buy
Artemis UK Smaller Companies I Acc11.2132.7292.66355.601.49Buy
Aviva Inv UK Smaller Companies 23.7023.22107.1269.480.92Buy
Baillie Gifford British Smaller Companies B Acc6.6224.28110.26195.211.07Buy
BlackRock UK Smaller Companies D Acc11.1033.42108.27397.721.14Buy
CF Miton UK Smaller Companies B Acc6.5341.99-155.180.68Buy
CFIC Octopus UK Micro Cap Growth P Acc8.9721.4168.8416.740.01Buy
F&C UK Smaller Companies 2 Acc5.3438.57133.9935.881.20Buy
Franklin UK Smaller Companies W Acc2.3632.1788.54277.901.11Buy
Henderson UK & Irish Smaller Companies I Acc0.0812.5870.13163.060.50Buy
Henderson UK Smaller Companies I Acc7.8836.80139.17126.991.50Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc10.4042.03116.11530.521.13Buy
Investec UK Smaller Companies I Acc GBP2.2927.74105.65387.031.03Buy
JPM UK Smaller Companies C Acc-1.9918.2894.73121.301.05Buy
Jupiter UK Smaller Companies I Acc13.8637.40104.5272.140.60Buy
Kames UK Smaller Companies D Acc2.2628.2994.98273.001.18Buy
Kames UK Smaller Companies B Acc2.5129.1596.71273.001.42Buy
L&G UK Smaller Companies Trust I Acc2.3928.40108.78335.691.40Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B4.0530.50102.9447.121.05Buy
AXA Framlington UK Smaller Cos Z Inc6.3751.91140.79282.511.04Buy
Aberforth UK Small Companies Inc-0.0421.98107.66202.172.92Buy
Baillie Gifford British Smaller Companies B Inc6.5924.25110.13195.211.07Buy
BlackRock UK Smaller Companies D Inc11.1233.43109.33397.721.15Buy
CF Miton UK Smaller Companies B Inc6.5341.99-155.180.68Buy
Cavendish AIM B17.5736.3886.6238.190.60Buy
Franklin UK Smaller Companies W Inc2.9231.0185.13277.901.13Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc10.4142.03116.11530.521.15Buy
Investec UK Smaller Companies I Inc GBP2.2827.73106.46387.031.04Buy
JPM UK Smaller Companies C Inc-1.9918.2794.59121.301.05Buy
L&G UK Smaller Companies Trust I Inc2.3728.42108.74335.691.50Buy
Lazard UK Smaller Companies Inst Inc4.3426.3297.9856.241.60Buy
Lazard UK Smaller Companies Ret C Inc4.5827.2298.7356.24-Buy
Liontrust UK Smaller Companies I Inc18.6455.12153.54508.550.27Buy
M&G Smaller Companies I Inc GBP1.2119.6291.71369.212.48Buy
Old Mutual UK Smaller Companies P Inc GBP13.9542.22132.99884.320.48Buy
Old Mutual UK Smaller Companies R Inc GBP14.3843.90134.30884.320.83Buy
R&M UK Equity Smaller Companies B Inc5.0353.48186.10686.291.06Buy
Schroder Institutional UK Smaller Companies Inst Inc8.4034.33113.67390.991.32Buy
Schroder UK Dynamic Smaller Companies Z Inc4.7121.67113.82457.200.57Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord-2.9413.07117.13-14.601,217.80Buy
Aberforth Geared Income Trust Plc Ord 1P2.4846.33181.79-10.99216.56Buy
Aberforth Geared Income Trust Plc ZDP 1P3.1412.6434.81--Buy
Athelney Trust PLC Ord 25p-4.7040.3884.57-15.04241.30Buy
BlackRock Smaller Companies IT5.6426.56128.33-14.301,098.60Buy
BlackRock Throgmorton Trust PLC3.7021.96115.97-18.45408.36Buy
Chelverton Growth Trust plc147.25198.01411.3671.9262.53Buy
Dunedin Smaller Companies Investment Trust PLC Ord 25p4.092.1785.36-17.43248.42Buy
Gresham House Strategic Plc 50P4.78-29.7348.48-1,084.90Buy
Henderson Smaller Companies Investment Trust Ord3.8932.22167.00-16.16755.60Buy
Invesco Perpetual UK Smaller Companies plc10.5045.09154.63-5.37422.68Buy
JP Morgan Smaller Cos IT plc-7.749.50108.07-19.941,009.50Buy
JP Morgan Smaller Cos IT plc Sub Shs 0.1p-80.77----Buy
Miton UK MicroCap Trust PLC Ord5.04---0.6658.01Buy
Montanaro UK Smaller Companies IT PLC-6.421.4355.19-21.41590.89Buy
Puma Vct 11 PLC Ord GBP0.0005----1.5796.52Buy
Rights & Issues Investment Trust Inc36.3892.25221.13--Buy
River And Mercantile UK Micro Cap7.87---8.08126.74Buy
SVM UK Emerging5.7416.7424.04-23.5184.33Buy
Standard Life UK Smaller Companies Trust PLC10.6626.7393.27-6.73384.38Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC3.3018.1349.5066.87-0.927.55VCT GeneralistBuy
Albion Enterprise VCT PLC6.8022.6155.7994.77-3.455.46VCT GeneralistBuy
Albion VCT PLC8.4822.9445.7072.32-8.057.52VCT GeneralistBuy
Albion Technology & General VCT-7.703.7815.7869.33-5.537.63VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P11.8019.2979.92118.13-4.985.57VCT AIM QuotedBuy
Amati VCT Plc7.5421.1728.4069.91-4.5210.49VCT AIM QuotedBuy
Artemis VCT PLC O Inc32.0980.37148.8471.82-11.596.30VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P9.2831.1668.9091.37-4.6424.68VCT GeneralistBuy
Baronsmead VCT 56.7346.1894.3376.36-4.7312.37VCT GeneralistBuy
Baronsmead Venture Trust PLC6.5731.2971.1986.27-4.2222.39VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P13.7121.1349.2161.20-5.237.76VCT GeneralistBuy
British Smaller Companies VCT14.3939.2750.05102.10-10.139.26VCT GeneralistBuy
Chrysalis VCT PLC19.8482.23138.3180.58-19.347.69VCT GeneralistBuy
Crown Place VCT-3.3210.0730.0529.26-12.019.71VCT GeneralistBuy
Downing One VCT PLC Ord1P6.0254.1636.7192.29-4.656.82VCT AIM QuotedBuy
Downing TWO VCT plc A36.10103.82103.620.102,404.93-VCT GeneralistBuy
Downing TWO VCT plc C1.51-60.71-56.0653.90-95.35-VCT GeneralistBuy
Downing TWO VCT plc D26.401.49-12.5551.80-71.04-VCT GeneralistBuy
Downing TWO VCT plc E-0.404,905.004,905.000.104,904.86-VCT GeneralistBuy
Downing TWO VCT plc F-2.58-12.44-69.39-4.897.58VCT 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)47.12
Fund ManagerSimon Moon
Fund Yield1.05%
Fund SectorUK Smaller Companies