Miton UK MicroCap Trust plc - Beaufort Securities
April 2015
Miton UK MicroCap Trust plc Why UK MicroCaps? ►► MicroCap stocks, the very smallest stocks in the market, are often under-researched and overlooked ►► There are over 1,300 stocks listed in London with a market cap of below £150 million providing a huge pool of opportunities ►► We believe that many MicroCap companies have the ability to grow their turnover and cash generation, and invest in productive growth, even when world growth is subdued
Why now? ►► We believe that the MicroCap sector (represented by the Numis 1000 index) can deliver higher returns over the longer term than mainstream smaller companies or the wider market in a low growth, low interest rate environment ►► The current valuation premium of listed UK larger companies over UK smaller companies points to an opportunity to take advantage of investing in smaller caps for the longer-term ►► Increased Government incentives to invest in AIM stocks
Why the Miton UK MicroCap Trust plc (the “Company”)? ►► Will invest primarily in AIM listed stocks sub £150 million market cap at the point of investment ►► Many small cap funds have minimal exposure to genuine MicroCap stocks and have high exposure to mid cap stocks. Eight of the twelve investment trusts are benchmarked against the Numis Smaller Companies Index whose constituents have an average market capitalisation of £318 million ►► Experienced fund managers with a robust investment process to take advantage of opportunities in the very smallest stocks ►► A diversified portfolio underpinned by careful individual stock selection ►► The investment trust structure is well-suited to capture the full benefits of investing in the very smallest quoted companies
Company details Investment Objective
The investment objective of the Company is to provide Shareholders with capital growth over the long term
Investment policy
The Company intends to invest primarily in the smallest companies, measured by their market capitalisation, quoted or traded on an exchange in the United Kingdom at the time of investment. It is likely that the majority of the MicroCap companies held in the Company’s portfolio will be quoted on AIM and will typically have a market capitalisation of less than £150 million at the time of investment The Company will invest no more than 10 per cent of gross assets at the time of investment in other investment funds and no more than 15 per cent of gross assets in any single holding. It will also have the flexibility to invest up to 10 per cent of its gross assets at the time of investment in unquoted or untraded companies www.mitongroup.com
April 2015
Miton UK MicroCap Trust plc The Managers ►► Managed by renowned UK smaller companies manager and What Investment’s Fund Manager of the Year 2014, Gervais Williams, along with small cap specialist, Martin Turner ►► A genuinely active management team, with a specific focus on the very smallest listed companies in this Company
Details of the Company ►► Issue price 50p per share ►► Initial NAV per share 49p per share ►► The annual management fee is 1% of the market cap of the Company (charged 75% to Capital and 25% to Revenue) ►► No performance fee ►► There is an annual redemption facility for shareholders ►► Target issue size is £100 million The Timetable Prospectus published: 8th April 2015 First placing, Offer for Subscription & Intermediaries Offer opens: 8th April 2015 Intermediaries Offer closes (to the public): Friday 24th April 2015 Offer for Subscription closes: 1pm, Monday 27th April 2015 First Placing closes: 5pm, Monday 27th April 2015 Announcement of the Result of the First Issue: Tuesday 28th April 2015 Admission to Trading and Commencement of Dealing: 8am, Thursday 30th April 2015 Important Information Past performance should not be seen as an indication of future performance. The information on this document is as at 09/04/2015. You should note that your capital is at risk with this investment and you may get back less than you invested. The value of the Company’s shares will fluctuate. The price of shares in the Company is determined by market supply and demand. The share price may be different to the net asset value of the Company. Investment in the securities of smaller companies can involve greater risk than may be associated with investment in larger, more established companies. The purpose of this document is to provide summary information regarding Miton UK MicroCap Trust plc. You should read the prospectus before investing. For more information go to www.mitongroup.com. We do not give investment advice so you need to decide if an investment is suitable for you. If you are unsure whether to invest, you should contact a financial adviser. Issued by Miton Trust Managers Limited, authorised and regulated by the Financial Conduct Authority. Our registered office is 51 Moorgate, London EC2R 6BH. MFP 15/147
www.mitongroup.com
Miton UK MicroCap Trust plc Why UK MicroCaps? ►► MicroCap stocks, the very smallest stocks in the market, are often under-researched and overlooked ►► There are over 1,300 stocks listed in London with a market cap of below £150 million providing a huge pool of opportunities ►► We believe that many MicroCap companies have the ability to grow their turnover and cash generation, and invest in productive growth, even when world growth is subdued
Why now? ►► We believe that the MicroCap sector (represented by the Numis 1000 index) can deliver higher returns over the longer term than mainstream smaller companies or the wider market in a low growth, low interest rate environment ►► The current valuation premium of listed UK larger companies over UK smaller companies points to an opportunity to take advantage of investing in smaller caps for the longer-term ►► Increased Government incentives to invest in AIM stocks
Why the Miton UK MicroCap Trust plc (the “Company”)? ►► Will invest primarily in AIM listed stocks sub £150 million market cap at the point of investment ►► Many small cap funds have minimal exposure to genuine MicroCap stocks and have high exposure to mid cap stocks. Eight of the twelve investment trusts are benchmarked against the Numis Smaller Companies Index whose constituents have an average market capitalisation of £318 million ►► Experienced fund managers with a robust investment process to take advantage of opportunities in the very smallest stocks ►► A diversified portfolio underpinned by careful individual stock selection ►► The investment trust structure is well-suited to capture the full benefits of investing in the very smallest quoted companies
Company details Investment Objective
The investment objective of the Company is to provide Shareholders with capital growth over the long term
Investment policy
The Company intends to invest primarily in the smallest companies, measured by their market capitalisation, quoted or traded on an exchange in the United Kingdom at the time of investment. It is likely that the majority of the MicroCap companies held in the Company’s portfolio will be quoted on AIM and will typically have a market capitalisation of less than £150 million at the time of investment The Company will invest no more than 10 per cent of gross assets at the time of investment in other investment funds and no more than 15 per cent of gross assets in any single holding. It will also have the flexibility to invest up to 10 per cent of its gross assets at the time of investment in unquoted or untraded companies www.mitongroup.com
April 2015
Miton UK MicroCap Trust plc The Managers ►► Managed by renowned UK smaller companies manager and What Investment’s Fund Manager of the Year 2014, Gervais Williams, along with small cap specialist, Martin Turner ►► A genuinely active management team, with a specific focus on the very smallest listed companies in this Company
Details of the Company ►► Issue price 50p per share ►► Initial NAV per share 49p per share ►► The annual management fee is 1% of the market cap of the Company (charged 75% to Capital and 25% to Revenue) ►► No performance fee ►► There is an annual redemption facility for shareholders ►► Target issue size is £100 million The Timetable Prospectus published: 8th April 2015 First placing, Offer for Subscription & Intermediaries Offer opens: 8th April 2015 Intermediaries Offer closes (to the public): Friday 24th April 2015 Offer for Subscription closes: 1pm, Monday 27th April 2015 First Placing closes: 5pm, Monday 27th April 2015 Announcement of the Result of the First Issue: Tuesday 28th April 2015 Admission to Trading and Commencement of Dealing: 8am, Thursday 30th April 2015 Important Information Past performance should not be seen as an indication of future performance. The information on this document is as at 09/04/2015. You should note that your capital is at risk with this investment and you may get back less than you invested. The value of the Company’s shares will fluctuate. The price of shares in the Company is determined by market supply and demand. The share price may be different to the net asset value of the Company. Investment in the securities of smaller companies can involve greater risk than may be associated with investment in larger, more established companies. The purpose of this document is to provide summary information regarding Miton UK MicroCap Trust plc. You should read the prospectus before investing. For more information go to www.mitongroup.com. We do not give investment advice so you need to decide if an investment is suitable for you. If you are unsure whether to invest, you should contact a financial adviser. Issued by Miton Trust Managers Limited, authorised and regulated by the Financial Conduct Authority. Our registered office is 51 Moorgate, London EC2R 6BH. MFP 15/147
www.mitongroup.com
