Smaller companies fund/trust

Thrugelmir

homestraight said:

Thrugelmir said:

homestraight said:

Thrugelmir said:

What's your definition of small?   

JPMorgan Japan Smaller Cos (JPS)

Henderson Smaller Companies (HSL)

Invesco Perpetual UK Smaller Cos (IPU)

Oryx International Growth Fund (OIG)
Herald (HRI)
Montanaro UK Smaller Cos (MTU)
North Atlantic Smaller Cos (NAS)
Augmentum Fintech (AUGM)

Thanks to Linton and you for your lists. 

My thoughts are a loose approach to shake companies which I'd describe as those providing meaningful diversification and growth potential but not included by an all- world tracker such as hsbc

With investment trusts you can exploit the discount anomalies that arise. Though patience maybe required. 

That was something I'd looked at in the past. It wouldn't drive my choice on this purchase but might be a nice bonus. 
I'd always hop with time in the market rather than timing but I cannot be somewhat patient. 

Do expect much movement pre or post US election? 
I'll make a shortlist and watch the prices closely

The top twenty holdings held must be of interest to me. I wouldn't buy for the discount alone. Even then it needs to be well north of 15% and the underlying yield attractive. Then there's a good chance of reasonable payback for minimal effort and risk.   

Bizarre US election. Polar opposites. All eyes for the time being are on the Fed. Will the Greenback printing presses keep rolling. As on many levels the US economy is struggling.  Biden seems to be ahead. With Trump appearing more desperate by the day to narrow the gap. Biden win would change the landscape. Though the US corporate untouchables are coming under attack from numerous directions. Perhaps first indications of an end of an era. Exceptional while it lasted. 

homestraight

Thrugelmir said:

homestraight said:

Thrugelmir said:

homestraight said:

Thrugelmir said:

What's your definition of small?   

JPMorgan Japan Smaller Cos (JPS)

Henderson Smaller Companies (HSL)

Invesco Perpetual UK Smaller Cos (IPU)

Oryx International Growth Fund (OIG)
Herald (HRI)
Montanaro UK Smaller Cos (MTU)
North Atlantic Smaller Cos (NAS)
Augmentum Fintech (AUGM)

Thanks to Linton and you for your lists. 

My thoughts are a loose approach to shake companies which I'd describe as those providing meaningful diversification and growth potential but not included by an all- world tracker such as hsbc

With investment trusts you can exploit the discount anomalies that arise. Though patience maybe required. 

That was something I'd looked at in the past. It wouldn't drive my choice on this purchase but might be a nice bonus. 
I'd always hop with time in the market rather than timing but I cannot be somewhat patient. 

Do expect much movement pre or post US election? 
I'll make a shortlist and watch the prices closely

The top twenty holdings held must be of interest to me. I wouldn't buy for the discount alone. Even then it needs to be well north of 15% and the underlying yield attractive. Then there's a good chance of reasonable payback for minimal effort and risk.   

Bizarre US election. Polar opposites. All eyes for the time being are on the Fed. Will the Greenback printing presses keep rolling. As on many levels the US economy is struggling.  Biden seems to be ahead. With Trump appearing more desperate by the day to narrow the gap. Biden win would change the landscape. Though the US corporate untouchables are coming under attack from numerous directions. Perhaps first indications of an end of an era. Exceptional while it lasted. 

Thanks for sharing your thoughts. 
I'll be watching with interest! 

NedS

I really like SLS for a UK smaller companies investment trust. The same manager (Harry Nimo) also manages an OEIC fund for global smaller companies, but likes others above, I tend to prefer active managers to stick to a region they hopefully know and I think there are sufficient opportunities in the smaller companies sector for that not to be restrictive (plus I generally prefer ITs for less liquid investments). I also like it when managers have skin in the game, so I'd also research what the manager's holding in the trust is.

darkidoe

Linton said:

The best place to start research is http://www.trustnet.com.  There you will be able to identify and compare funds, sort into performance order, look at what sectors they favour etc. 

Geography is more important for small companies than large as they tend to be dependant on their local economy both for sales and for people wishing to buy their shares and so provide greater diversification. Don’t just focus on the UK though UK small companies have performed better than large.  This is also true though perhaps  to a lesser extent of other geographies. 

i hold
Liontrust UK Smaller Companies
Baillie Gifford Japanese Smaller Companies
Artemis US Smaller Companies
Threadneedle European Smaller Companies
and am considering Matthews Asian Smaller Companies

However I would not strongly recommend them over others. I am not a great fan of global smaller company funds as I believe good local knowledge and research is helpful. Though unless you have a large portfolio, say > £100k, and want to overweight smaller companies holding a separate fund for each geography may not be justifiable.

Linton. Do you think there is still utility to holding a US smaller companies fund as I believe US larger cap are largely correlated to US Small cap in performance?

Steve182

If you can cope with volatility both Ballie Gifford Shin Nippon (IT) and Legg Mason IF Japan Equity invest in "smaller" Japanese companies and have performed very well over the past 5 years. I now hold both.

green_man

I’m still in the market for getting a smaller companies fund as part of my SIPP.  My favourite so far is 

Herald (HRI) 

This is about 50% uk and is overweight in Tech/comms, This suits my particular requirements. Unfortunately it’s been on a bit of a run just recently and currently has the smallest discount for some time so Im a bit reluctant to jump in.