Artemis appointed to manage UK small cap Investment Trust
Our press enquiries team
Artemis announces today (Thursday 19 December 2024) that it has been appointed as investment manager for the Invesco Perpetual UK Smaller Companies Investment Trust plc.
Subject to regulatory approval, Artemis will take over management on the portfolio in the first quarter of 2025. The trust will be managed by Mark Niznik and Will Tamworth who have been jointly managing the Artemis UK Smaller Companies Fund, an open-ended portfolio, for the last eight years.
Niznik commented: ‘I am incredibly excited to have the opportunity to manage this trust again, having first managed it over 30 years ago. Will and I will use the same disciplined investment process we have successfully employed on the unit trust while taking advantage of the benefits of a closed-ended structure.’
Tamworth: ‘The smaller companies’ universe is home to a wide range of market leading businesses that we believe are trading at attractive valuations for investors with a medium to long-term mindset. The conditions for the long-term small cap premium of 3 per cent per annum outperformance relative to large cap companies remains in place.’
Paras Anand, CIO, commented: ‘We are very grateful to the Board for this opportunity. Well-run investment trusts can deliver outstanding outcomes for shareholders and are particularly suited to asset classes such as UK small caps where the team can access a broad range of exceptional investments.‘
Risks specific to Artemis UK Future Leaders plc
- Market volatility risk The net asset value of the trust, and the income it receives from its investments, can rise and fall because of movements in stockmarkets, currencies and interest rates, each of which can move irrationally and be affected unpredictably by diverse factors, including political and economic events.
- Currency risk The trust’s assets may be priced in currencies other than the trust base currency. Changes in currency exchange rates can therefore affect the trust's value.
- Derivatives risk The trust may invest in derivatives with the aim of profiting from falling (‘shorting’) as well as rising prices. Should the asset’s value vary in an unexpected way, the trust value could reduce.
- Gearing risk The trust may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the net asset value meaning that any movement in the value of the trust’s assets will result in a magnified movement in the net asset value.
- Smaller companies risk Investing in small companies can involve more risk than investing in larger, more established companies. Shares in smaller companies may not be as easy to sell, which can cause difficulty in valuing those shares.
- Income risk The payment of income and its level is not guaranteed.
- Premium/discount risk Investment trust shares tend to trade at discounts to their underlying net asset values, although they can also trade at a premium. Discounts and premiums can fluctuate considerably leading to more volatile returns for shareholders. There is no guarantee that the market price of the trust's shares will fully reflect their underlying net asset value.
- Market spread risk As with all stock exchange investments, the prices at which shares can be purchased and sold can be different, this is called the bid-offer spread. The bid-offer spread can widen when trading volumes are lower or when there is increased market volatility.
