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 B28.1536.32150.4454.701.61Buy
AXA Framlington UK Smaller Cos Z Acc26.6262.11178.08315.840.87Buy
Aberdeen UK Smaller Companies Equity I Acc26.8634.26107.18326.901.70Buy
Aberforth UK Small Companies26.6635.15134.12270.53-Buy
Artemis UK Smaller Companies I Acc31.2152.24119.39421.531.58Buy
Aviva Inv UK Smaller Companies 216.7431.62109.0341.300.83Buy
Baillie Gifford British Smaller Companies B Acc23.9436.74102.99196.020.80Buy
BlackRock UK Smaller Companies D Acc31.2052.05138.47452.440.97Buy
CF Livingbridge UK Micro Cap C Acc19.2938.66173.0368.460.70Buy
CF Miton UK Smaller Companies B Acc18.5525.05-195.130.60Buy
F&C UK Smaller Companies 2 Acc24.4150.60147.3434.161.00Buy
FP Octopus UK Micro Cap Growth P Acc36.2931.5697.7224.67-Buy
Franklin UK Smaller Companies W Acc20.5244.85136.31271.311.14Buy
Henderson UK & Irish Smaller Companies I Acc23.8419.1393.52177.290.50Buy
Henderson UK Smaller Companies I Acc28.6953.73154.77146.071.30Buy
Invesco Perpetual UK Smaller Companies Equity Z Acc31.5962.71151.20642.070.91Buy
Investec UK Smaller Companies I Acc GBP18.9125.50119.68338.431.68Buy
JPM UK Smaller Companies C Acc22.7333.51113.34133.121.28Buy
Jupiter UK Smaller Companies I Acc34.7761.39135.44109.980.50Buy
Kames UK Smaller Companies D Acc19.9844.35120.75286.001.01Buy
Kames UK Smaller Companies B Acc20.2845.33123.07286.001.22Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Unicorn UK Smaller Companies B28.1536.32150.4454.701.61Buy
AXA Framlington UK Smaller Cos Z Inc25.8761.01176.20315.840.88Buy
Aberforth UK Small Companies Inc26.7035.31134.57270.532.45Buy
Baillie Gifford British Smaller Companies B Inc23.9436.72102.84196.020.80Buy
BlackRock UK Smaller Companies D Inc31.1952.08140.86452.440.97Buy
CF Livingbridge UK Micro Cap C Inc19.3038.61172.9468.460.69Buy
CF Miton UK Smaller Companies B Inc18.5525.04-195.130.60Buy
Franklin UK Smaller Companies W Inc20.5244.20132.03271.311.15Buy
Invesco Perpetual UK Smaller Companies Equity Z Inc31.5862.70151.19642.070.93Buy
Investec UK Smaller Companies I Inc GBP18.9225.52119.63338.431.72Buy
JPM UK Smaller Companies C Inc22.7233.49113.14133.121.30Buy
L&G UK Smaller Companies Trust I Inc13.0629.76107.58342.391.40Buy
Lazard UK Smaller Companies A Inc21.2534.39107.0362.111.60Buy
Lazard UK Smaller Companies C Inc21.5735.27108.8262.11-Buy
Liontrust UK Smaller Companies I Inc31.8357.45166.17712.330.23Buy
M&G Smaller Companies I Inc GBP28.0839.85113.95430.802.14Buy
Old Mutual UK Smaller Companies P Inc GBP33.9567.64163.291,120.760.40Buy
Old Mutual UK Smaller Companies R Inc GBP34.4469.60167.041,120.760.69Buy
R&M UK Equity Smaller Companies B Inc26.2253.00225.36818.751.10Buy
Schroder Institutional UK Smaller Companies Inst Inc33.3556.68148.65439.781.34Buy
Schroder UK Dynamic Smaller Companies Z Inc36.7343.35155.25619.800.65Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberforth Smaller Companies Trust plc Ord29.0929.86152.13-11.021,465.57Buy
Aberforth Geared Income Trust Plc Ord 1P36.5064.30247.06-5.47252.71Buy
Aberforth Geared Income Trust Plc ZDP 1P3.5810.9831.340.47158.51Buy
Athelney Trust PLC Ord 25p5.4414.06157.68-4.04262.60Buy
BlackRock Smaller Companies IT38.4655.02172.04-12.831,377.71Buy
BlackRock Throgmorton Trust PLC34.3556.97168.89-16.15509.26Buy
Chelverton Growth Trust plc1.4564.71174.51-7.8075.92Buy
Downing Strategic Micro-Cap Investment Trust Plc Red Ord GBP0.001-----Buy
Dunedin Smaller Companies Investment Trust PLC Ord 5p27.7823.56127.64-16.87289.02Buy
Gresham House Strategic Plc 50P7.89-12.3054.33-27.691,182.40Buy
Henderson Smaller Companies Investment Trust Ord33.8161.31206.65-13.56898.90Buy
Invesco Perpetual UK Smaller Companies plc31.5167.84190.71-5.06501.87Buy
JP Morgan Smaller Cos IT plc17.9124.48127.12-18.501,159.53Buy
JP Morgan Smaller Cos IT plc Sub Shs 0.1p-53.03----Buy
Miton UK MicroCap Trust PLC Ord10.81---2.7364.77Buy
Montanaro UK Smaller Companies IT PLC20.0819.6576.18-19.22674.94Buy
Rights & Issues Investment Trust Inc47.9692.51265.12--Buy
River And Mercantile UK Micro Cap44.68---0.47170.80Buy
SVM UK Emerging21.9930.6747.00-26.4499.92Buy
Standard Life UK Smaller Companies Trust PLC25.3758.57133.14-6.52455.71Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Albion Development VCT PLC6.0618.8040.1270.70-4.536.67VCT GeneralistBuy
Albion Enterprise VCT PLC12.0624.3584.0099.94-4.945.26VCT GeneralistBuy
Albion VCT PLC8.5624.4848.0473.00-8.227.46VCT GeneralistBuy
Albion Technology & General VCT4.602.8244.8871.60-4.334.74VCT GeneralistBuy
Amati VCT 2 PLC Ord 5P26.9233.4572.45144.91-7.185.20VCT AIM QuotedBuy
Amati VCT Plc25.2325.0448.0784.63-7.545.11VCT AIM QuotedBuy
Artemis VCT PLC O Inc40.2595.11216.0782.53-10.9416.33VCT AIM QuotedBuy
Baronsmead Second Venture Trust Plc Ord 10P10.7822.6167.3092.91-4.4822.54VCT GeneralistBuy
Baronsmead Venture Trust PLC11.0625.1975.1589.80-4.6521.02VCT GeneralistBuy
British Smaller Companies VCT 2 PLC Ord 10P1.5925.9542.0260.40-6.466.19VCT GeneralistBuy
British Smaller Companies VCT9.7744.4184.6998.60-22.9236.51VCT GeneralistBuy
Chrysalis VCT PLC17.0748.95120.6380.80-21.417.87VCT GeneralistBuy
Crown Place VCT13.3522.8152.4130.84-5.976.90VCT GeneralistBuy
Downing One VCT PLC Ord1P2.829.8447.4593.50-8.967.05VCT AIM QuotedBuy
Downing TWO VCT plc D51.9463.3944.1736.60-84.97-VCT GeneralistBuy
Downing TWO VCT plc E-4,905.004,905.000.104,905.00-VCT GeneralistBuy
Downing TWO VCT plc F0.68-6.69-17.1169.70-13.928.33VCT GeneralistBuy
Downing TWO VCT plc G0.770.97-83.50-4.196.25VCT GeneralistBuy
Downing TWO VCT plc K 0.1P5.00--99.006.06-VCT Generalist Pre QualifyingBuy
Downing Three VCT plc D51.9442.2628.6736.40-84.89-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)54.70
Fund ManagerSimon Moon
Fund Yield1.61%
Fund SectorUK Smaller Companies