Skip to main content

Artemis UK Future Leaders plc (AFL)

Our proven UK smaller companies approach in an investment trust structure, seeking UK smaller companies at attractive valuations with market leading positions.

FOR PROFESSIONAL AND/OR QUALIFIED INVESTORS ONLY. NOT FOR USE WITH OR BY PRIVATE INVESTORS. This is a marketing communication. Before making any final investment decisions, and to understand the investment risks involved, refer to the Investor Disclosure Document, Articles of Association and KID, available in English, from www.artemisfunds.com or www.fundinfo.com. CAPITAL AT RISK. All financial investments involve taking risk and the value of your investment may go down as well as up. This means your investment is not guaranteed and you may not get back as much as you put in. Any income from the investment is also likely to vary and cannot be guaranteed.

About the trust




Artemis UK Future Leaders plc is a closed-ended investment trust. Artemis became the appointed manager of the trust on 10 March 2025 and the name has been changed from Invesco Perpetual UK Smaller Companies Trust plc. The ticker for Artemis Future Leaders is AFL. For the latest share price and performance information please visit the trust’s London Stock Exchange page.


The trust seeks to invest in UK smaller companies that occupy market-leading positions or that we believe can establish leading positions in the future. The managers Mark Niznik and Will Tamworth take a long-term approach in actively managing the trust’s investments. They use a highly disciplined approach to analysing the value of companies and the strength of their cash flows and profitability.

Mark and Will have worked together at Artemis for nearly ten years. They jointly manage the Artemis UK Smaller Companies Fund, an open-ended fund. The trust is managed using the same fundamental approach to company research and valuation. However, its closed-end structure means Mark and Will are now able to hunt for opportunities amongst their existing universe of medium and small companies and further down the market cap spectrum.

Pull quote from William 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. And we believe a closed-ended Investment Trust is the ideal vehicle to access companies slightly further down the market cap spectrum."

Find answers about Artemis UK Future Leaders plc by clicking here to get our FAQs

About the managers



 

Mark Niznik

Mark has managed Artemis‘ ‘UK smaller companies‘ strategy since joining the firm in 2007. He started his investment career in 1985 and has worked at firms including Invesco Perpetual and Standard Life.

Grace Le 

William Tamworth

William works alongside Mark in managing Artemis’ ‘UK smaller companies’ strategy. Prior to joining Artemis in 2015, William worked at Liberum and Citigroup where he analysed small and mid-cap companies.


 

Investment trust overview

 

Identifying Future Leaders

 

 


RSMR rated fund

 

Rating as at 30 April 2025

Frequently Asked Questions

Changes and overview

Why has the investment trust changed its manager?
The Investment Trust has changed its manager as part of a strategic decision to improve the Trust's investment performance, align with the evolving market conditions, and ensure the fund's long-term growth. The new manager brings fresh expertise and a proven track record of investing in UK smaller companies.
Who is the new manager, and what experience do they have?
The new manager is Artemis Fund Managers, a leading investment management firm with extensive experience in managing UK small cap portfolios. The firm launched the Artemis UK Smaller Companies fund in 1998 and the current team have been managing it together for nearly 10 years. The team has demonstrated a consistent ability to deliver strong returns and navigate market challenges effectively.
Who are the new fund managers?

Mark Niznik and Will Tamworth are the new co-fund managers of the Trust. Mark joined Artemis in 2007 and Will in 2015.

They have worked together since 2015 and bring considerable expertise in the UK small-cap equity space. They are supported by a deep bench of UK equity fund managers at Artemis who meet regularly to share ideas and insights on events and trends impacting UK equities. The UK team has been very stable (average tenure at Artemis of the 10 UK fund managers is 14 years).

Why has the investment trust changed its name?

The name change (from Invesco UK Smaller Companies Investment Trust plc to Artemis UK Future Leaders plc) is part of a rebranding effort to reflect the new direction and strategic goals of the Trust under the new management. The new name is designed to better align with the fund’s investment approach and market positioning.

The fund managers invest in companies that are leaders in their niches. This gives them a greater chance of earning above average returns and, critically in the current inflationary backdrop, a greater chance of having pricing power (it does not guarantee either). Future is a reminder that market positions are not static. We like to invest in companies that can strengthen existing leadership positions or establish new leadership positions.

Will the change in manager impact the fund’s investment strategy?
While the new manager may introduce some modifications in the approach to investment, the overall strategy will remain aligned with the Trust’s objectives. Investors can expect a continued focus on UK small caps though there will be a greater focus on company valuations.
Will the change in manager and name affect the value of my investment?

The change in manager and name is not expected to have an immediate impact on the value of your investment.

The Trust will continue to operate as usual, and the fund's performance will depend on the market conditions and the manager's strategy.


Impact on investors

Do I need to take any action as an investor?
No immediate action is required from investors. Your investment will continue to be managed in line with the Trust’s objectives, and you will be notified of any significant changes that may require action. You may want to review the Trust's updated documentation for details on the changes.
How will the change be communicated to investors?
We will communicate all important updates via official channels, including email notifications, the Trust's website, and shareholder meetings. Additionally, the updated fund documentation is available for review.
Will my shares be affected by the name change?
No, your shares will remain the same, and you will continue to hold your investment in the trust. The only change is the name of the trust, which will be reflected in official documents and communications. If you hold paper share certificates they will remain valid and we will not be issuing new certificates.
Can I continue to invest in the trust under the new management?
Yes, the Trust will continue to trade as usual.
Where can I get more information about the changes?
For more information contact our shareholder services team on 0800 092 2051. Updated documentation and information is available on this page.

Fees and dividend policy

Will the Trust’s fees change as a result of the new manager?
Artemis will charge a management fee of 0.65% of net assets up to £50 million and 0.55% thereafter (compared to the fee of 0.75% of gross assets currently paid by the Company). Artemis also agreed to waive the first nine months of management fees post appointment (to December 2025).
Will there be any changes to the dividend policy?
There is no plan to change the dividend policy. The Trust's dividend policy is to distribute all available revenue earned by the portfolio in the form of dividends to shareholders. In addition, the Board has approved the use of the Trust's capital reserves to enhance dividend payments. Therefore, the total dividend, paid to shareholders on a quarterly basis, comprises income received from the portfolio, with the balance coming from capital reserves. In normal circumstances, the dividend for the year is calculated to give a yield of 4.0% based on the year-end share price.

Investment approach and differences

What’s the difference between this strategy and the open-ended fund that the team manages?
The investment team, approach and philosophy will be consistent across the two strategies. The key difference will be that in the Investment Trust the team will take advantage of the closed ended structure to have slightly more exposure to micro-caps and run a slightly more concentrated portfolio. In the future they may also take advantage of the Investment Trust’s ability to use leverage.
Why will you increase the micro-cap exposure?
Over the long-term (since 1955) UK small caps have outperformed large caps by 3% p.a. UK micro-caps have done even better – outperforming by over 4% p.a. The enormous power of compounding means this translates to a 16.6x relative outperformance over this period. Despite this outperformance this is an area of the market that is increasingly overlooked due to greater scrutiny over the liquidity profile of open-ended funds. We also see greater scope for smaller companies – which naturally get less attention – to be mispriced. The Trust's size and closed ended nature leaves it ideally positioned to exploit this opportunity.
What experience have the team of investing in micro-caps? Isn’t that very different from what they do today?

The team has extensive experience of investing in micro caps and knows the universe well. Within the open-ended fund they have just limited their exposure to these companies with an eye on liquidity. The managers will not invest in unquoted companies. They see this as requiring a different skill set.

The managers will not invest in unquoted companies. They see this as requiring a different skill set.

Key Facts


For the latest price and performance information please visit the trust’s London Stock Exchange page.

Fund Type
Investment Trust
Asset Class
Equity
Focus
Capital Growth
Regional Focus
United Kingdom
IA Sector
IA UK Equity Income NR
Benchmark index
Deutsche Numis Smaller Companies index ex IT plus AIM1
SEDOL
B1FL3C7
ISIN
GB00B1FL3C76
Ticker
AFL LN
Appointed manager
10 March 2025
Launch Date
1 March 19882
Currency
GBP
Year end
31 Jan
Shares in issue
30.37m
AGM date
May/June
Dividend pay dates
September, December, March and June
Directors
Bridget Guerin, Mike Prentis, Graham Paterson and Simon Longfellow
Registered office
50 Bank Street, Canary Wharf, London, E14 5NT
Company number
02129187
Registrars
MUFG Corporate Markets (formerly known as Link Group) 10th Floor, 29 Wellington Street, Leeds, England, LS1 4DL
Announcements
Change of name

1The Manager seeks to outperform the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index. As a result, the Manager’s approach can, and often does, result in significant overweight or underweight positions in individual stocks or sectors compared with the benchmark.

2The investment trust was launched in March 1988 (formerly known as Berry Starquest plc). Perpetual took over the management of the investment trust on 1 March 1994. On 13 June 2002, the investment trust's name changed to Invesco Perpetual UK Smaller Companies Investment Trust plc. Artemis assumed management of the trust on 10 March 2025.


Investment objective

  • The Company aims to achieve long-term total returns for shareholders primarily by actively investing in a broad cross-section of small to medium sized UK quoted companies.


Investment risks

  • Market volatility risk: The value of the trust and any income from it can fall or rise 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.
  • 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: Although the trust aims to pay a regular income, the payment of income and its level is not guaranteed.
  • Charges from capital risk: Where charges are taken wholly or partly out of a trust's capital, distributable income may be increased at the expense of capital, which may constrain or erode capital growth.
  • Counterparty risk: Investments such as derivatives are made using financial contracts with third parties. Those third parties may fail to meet their obligations to the trust due to events beyond the trust's control. The trust's value could fall because of loss of monies owed by the counterparty and/or the cost of replacement financial contracts.
  • Leverage risk: The trust may operate with a significant amount of leverage. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested. A leveraged portfolio may result in large fluctuations in its value and therefore entails a high degree of risk including the risk that losses may be substantial.
  • Investment in a trust concerns the acquisition of units/shares in the trust and not in the underlying assets of the trust.

    Reference to specific shares or companies should not be taken as advice or a recommendation to invest in them.


Board of directors

 

 

Bridget Guerin

Chair

Joined Board: May 2018

Over 33 years in the investment industry, former marketing director at Ivory & Sime and Schroders, managed MD at Matrix Money Management Ltd.

 

Mike Prentis

Director

Joined Board: February 2021

33 years in UK small-cap investing, former BlackRock Smaller Companies Trust manager, chartered accountant.

 

 

 

Graham Paterson

Director

Joined Board: October 2019

20 years in private equity, co-founded SL Capital Partners and TopQ Software, chartered accountant, Audit Committee Chair since 2020.

 

Simon Longfellow

Director

Joined Board: July 2023

Co-founded Steps to Investing, runs Neo Strategic Marketing, former head of investment trust marketing at Janus Henderson.

Important information

FOR PROFESSIONAL AND/OR QUALIFIED INVESTORS ONLY. NOT FOR USE WITH OR BY PRIVATE INVESTORS. This is a marketing communication. Before making any final investment decisions, and to understand the investment risks involved, refer to the Investor Disclosure Document, Articles of Association and KID, available in English, from www.artemisfunds.com or www.fundinfo.com. CAPITAL AT RISK. All financial investments involve taking risk and the value of your investment may go down as well as up. This means your investment is not guaranteed and you may not get back as much as you put in. Any income from the investment is also likely to vary and cannot be guaranteed.

Any research and analysis in this communication has been obtained by Artemis for its own use. Although this communication is based on sources of information that Artemis believes to be reliable, no guarantee is given as to its accuracy or completeness.

Any statements are based on Artemis’ current opinions and are subject to change without notice. They are not intended to provide investment advice and should not be construed as a recommendation.