Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Miton UK MicroCap. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
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Overview

Miton UK MicroCap (MINI) is a £69m investment trust offers investors a domestically-focused and differentiated portfolio invested in the smallest companies in the UK.

MINI was launched in 2015 in anticipation that globalisation would cause political upheaval, and on the assumption that microcaps were set for a revival. The managers pride themselves on the portfolio being unlike any of the major indices, or the other smaller company trusts in the sector for that matter, with an active share of almost 100% to the FTSE All Share.

Stock-specific risk is spread via a wide range of relatively small holdings, and currently the portfolio has 120 holdings, of which the top ten make up close to 30% of NAV. This diversification is an important part of the approach at MINI, with moderated risk and managing downside volatility being key characteristics of the trust. To that end, the investment process focuses on meticulous fundamental analysis and on entering companies at attractive valuations.

Since inception of the trust performance has been varied, as discussed in the performance tab. With this said, it has been an exceptionally difficult period for UK smaller companies managers, and even more so in the micro-cap space. However, with this brings the current discount of 6.4%.

Kepler View

Miton UK MicroCap looks like very little else in the AIC UK Smaller Companies sector, offering investors exposure to some of the smallest and most exciting opportunities within the UK. With companies as small as £2m on the books, MINI has the potential to deliver premium returns vastly in excess of peers. As we continue to see world growth slowing, it is possible that the mainstream indices will moderate their growth too, while the companies that MINI invests in have the capacity to continue their growth regardless of the wider economic cycle.

Alongside this, the trust can be a useful tool for investors looking for diversification from mainstream trusts and funds. Major sectors within the mainstream indices are often replicated across many developed markets, and the benchmark agnostic portfolio construction of Gervais and Martin means the trust has an active share of close to 100% relative to the FTSE All-Share Index.

While the trust’s small size and highly specialised mandate might not appeal to all investors, we think this philosophy, and Gervais' record of making the right calls – Gartmore Irish Growth in its early days being a prime example – make this an interesting time to consider the trust. Currently trading at a discount of 6%, the discount has narrowed considerably over the past few months. We believe this is only likely to continue as global growth slows and fundamentals driven investing, as opposed to a pure growth focus, begins to come back into fashion.

Bull bear
Unique and differentiated investment approach Reasonably high OCF
For investors who currently hold mainstream funds, the trust offers a real chance to diversify their portfolio Illiquid underlying holdings
The manager has a history of correctly predicting long-term economic trends
Continue to Portfolio

Fund History

10 Aug 2022 Get ‘em while they’re hot
Wide discounts in the UK Smaller Companies sector may present long term investors with good entry opportunities…
20 Jul 2022 Results analysis: Miton UK MicroCap
MINI’s share price discount could offer a good long-term entry opportunity…
16 May 2022 Podcast: How small caps will benefit from deglobalisation
Kepler's David Kimberley meets small cap veteran Gervais Williams for our first ever podcast...
16 Feb 2022 Perfectly formed
Our research suggests that investment trusts really are a better way to gain exposure to smaller companies…
30 Dec 2021 Fund Analysis
Specialising in the very smallest UK listed companies, MINI can provide a differentiated source of growth…
30 Dec 2021 Great expectations
As the last of the mince pies wilts in the fridge, topped with a generous helping of stilton, the Kepler Trust Intelligence team stick a finger in the air and point toward their top picks for the year ahead…
03 Nov 2021 Don't fear the reaper
With market direction hard to call, we consider the case for taking a long-term view in the investment trust sector…
29 Sep 2021 Slings and arrows
Our analysts argue over whether it’s better to take arms against volatility in a portfolio, or to simply suffer it…
11 Aug 2021 In at the deep end
Does seeking out wider-than-usual discounts help investors systematically outperform in the UK trust space?
30 Jun 2021 Inflation – a real threat or hot air?
Two of our analysts ask whether recent high inflation numbers indicate something long-lasting and troubling is happening…
05 May 2021 Vive la revolution
For thirty years quality has had a structural tailwind; but revolt is in the air and value is on the barricades…
07 Apr 2021 Fund Analysis
After an exceptional 2020, MINI may yet have further to go…
24 Mar 2021 Shoot to Thrill: ISA targets for long term growth
We all intend to invest for the long-term but can often be distracted by the news...
10 Feb 2021 Eye of the Pfizer
Mining shares have rallied in recent months. With further potential, what impact could this have on the relative returns of active UK Small cap strategies...
14 Oct 2020 Fund Analysis
MINI is the strongest performing UK Smaller companies trust in 2020…
06 May 2020 The fight in the dog
We look at the characteristics which have separated the winners from the losers among small-cap trusts in the current crisis, with some surprising results...
05 May 2020 Large vs small
Equity markets are pricing in continued large-cap outperformance. Will this continue?
30 Apr 2020 Talking Trusts - Gervais Williams, Miton UK MicroCap
Earlier this month, we hosted a webinar and live Q&A with Gervais Williams - watch the video and hear the audio here...
02 Oct 2019 Fund Analysis
Based around a clear macroeconomic view, MINI offers investors exposure to some of the most exciting opportunities within the UK…
11 Sep 2019 Nanny knows best: how regulation is influencing returns
New research suggests disruption is threatened by increased regulation, with clear consequences for investment strategists...
04 Jul 2019 An industry icon
Stalwart of the investment trust sector Gervais Williams explains how a three decade history with trusts has informed his thinking...
19 Feb 2019 Fund Analysis
Miton UK MicroCap is quickly becoming one of the most attractive vehicles to the UK small cap market...
12 Sep 2018 High flyers
Our research shows small-cap managers adding consistently more alpha, and regulatory change means this could be an attractive time to invest in the sector...
11 Sep 2018 Fund Analysis
Run by Gervais Williams and Martin Turner, Miton UK Micro Cap is a £102m investment trust that invests in the smallest companies in the UK...
19 Jun 2018 Pretty little things
Many smaller companies managers have been shifting into micro caps in 2018, should investors be following suit?
View all

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