Miton UK MicroCap 02 October 2019
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.
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%.