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Why invest in UK Micro Cap?


Under researched

Inefficient markets mean micro cap stocks are known to be under researched by the market, resulting in more opportunity to identify companies flying under the radar.

Rich territory

There is a large pool of micro cap stocks to choose from - c.75% of the 1,270 companies in the NSCI + AIM Index are below £250m market cap.1

New idea rotation

The investment universe is constantly changing - only 30% of the current listed companies existed 10 years ago.2 

Long-term performance

Academic studies show micro caps have outperformed small, mid & large cap stocks over the long term. 3

Under valued 

Micro cap p/e multiples are typically highly discounted due to being less covered, less well known and having a perceived higher risk. 4

Perceived risk

Our combined expertise and stringent research process helps us to mitigate for downside risk factors and assess the opportunities available.

 

We seek to invest in businesses which have the potential to more than double their profits within three to five years due to their niche positioning, addressable market opportunity, and ability to be agile relative to larger competitors.

 

Read more

 

1. Source: Peel Hunt research, September 2017
2. Source: London Stock Exchange (London Stock Exchange and UK only) 
3. Source: NSCI 2017 Annual Review, Evans/Marsh
4. Source: Peel Hunt research, September 2017

Fund objective and key stats

The fund aims to achieve long-term capital growth through investment primarily in equities of UK companies. Investment in the main will be in an actively managed portfolio of equities of smaller UK companies traded on AIM and other UK markets which are considered to have potential for capital growth.

Investing in smaller companies, including AIM companies, can carry greater risks than those usually associated with larger companies and investors’ capital is at risk.

Ken BG      

Fund manager: Ken Wotton            Co-manager: Brendan Gulston

Launch date: 19 May 2009

Fund Sector: IA UK Smaller Companies

Number of holdings: 40-60

Fund Type: NURS

Base Currency: GBP

Pricing: 12.00 Noon GMT

ISIN: GB00B5559X98

Annual Management Charge: 0.90%

Minimum Investment: £100,000

 

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Why are we different?

Ken Wotton, Fund manager, explains how the Fund seeks to deliver consistent returns with lower volatility through their high conviction investment process - leveraging research and insight from the wider Livingbridge private equity platform.

Platform availability

 fnz platform

standard old mutual hubwise

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How to invest

Shares may be bought directly from Link Fund Solutions Limited (“Link Fund Solutions”) or through a professional adviser or other intermediary, application forms may be obtained from Link Fund Solutions.

 

Website: www.linkfundsolutions.co.uk

Email: investorservices@linkgroup.co.uk

Call: 0845 922 0044

Important Information


Past performance is not a reliable indicator of future performance. The value of the Fund and the income from it is not guaranteed and may fall as well as rise. As your capital is at risk you may get back less than you originally invested.

Fund investing in smaller companies may carry a higher degree of risk than funds investing in larger companies. The shares of smaller companies may be less liquid than securities in larger companies. You should note that your tax treatment in relation to any investments will depend on your individual circumstances and may be subject to change in the future. Governments may change the tax rules which affect you or the funds in which you have invested.

The LF Livingbridge UK Micro Cap Fund is a non-UCITS retail scheme (NURS), which is also an OEIC but one that does not comply with the requirements of UCITS IV and so cannot be marketed to investors across the EEA. A NURS fund can still be marketed to retail investors in the UK.