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Artemis UK Smaller Companies Class I Class I - Income

Sell:1,916.05p Buy:1,916.05p Change: 15.15p (0.80%)
Prices as at 24 December 2024
Sell:1,916.05p
Buy:1,916.05p
Change: 15.15p (0.80%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 24 December 2024
Sell:1,916.05p
Buy:1,916.05p
Change: 15.15p (0.80%)
Prices as at 24 December 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Mark Niznik has vast experience of investing in smaller companies and we think he has skill and support to deliver good long-term returns to patient investors.

We have a positive view of both managers, however given Niznik’s vast experience of investing in smaller companies, at present, our conviction in this fund is based on his continued involvement.

The fund could add diversification to the UK portion of an adventurous global portfolio or could complement a UK focused portfolio orientated towards larger, more established businesses.

Our view on the sector

Smaller companies in the UK are among the most innovative and exciting around. They can be pioneers of an emerging industry, and adapt quickly to new opportunities. We think their long-term growth prospects are compelling. Some will blossom into the giants of tomorrow. But others will struggle or fail altogether, so they are higher risk. Unlike larger companies such as Tesco or Vodafone, which might have dozens of analysts poring over their accounts, smaller companies tend to be less researched. They might only have one or two analysts covering them which creates opportunities for eagle-eyed fund managers to spot hidden gems. Over the past decade, innovations such as the internet have allowed smaller companies to level the playing field with larger rivals. Even so, they tend to be more sensitive to the UK economy then larger companies so you should expect more ups and downs along the way. We think UK smaller companies could be a great addition to a diversified portfolio able to accept the increased volatility.

Performance Analysis

The fund has a value focused investment strategy. Its higher quality approach and focus on valuation means that we expect it not to fall as much as some other funds during down markets, providing some shelter from the worst of market falls. However, this does mean we think the fund could lag its growth focused UK smaller companies peer group in a strongly rising market.

Investing in smaller companies is higher risk and investors should invest for the long term and be prepared for volatility along the way.

Investment Philosophy

The managers believe smaller companies possess lots of growth potential. They aim to use their experience to uncover hidden gems, and then benefit from investing in them as they compound in this under researched part of the market.

Process and Portfolio Construction

Niznik and Tamworth look for businesses that are leaders in their markets and have a good degree of visibility of their future earnings. These businesses should have strong balance sheets to support their growth and be driven by capable and experienced management teams. They should also be cash generative, and trade at attractive valuations, offering investors the prospect of good returns in the future. Not every stock will fulfil each of these criteria, so the managers are pragmatic in forming an overall view on how well a company fits the bill.

The managers won’t invest in companies that are pre-revenue because of their focus on cash generation. They are also sceptical about the prospect of investing in small businesses with very ambitious growth projections attached to their future performance expectations. The outcome of this process is a value style bias.

This process leads them to a portfolio of 60-90 stocks, with individual company position sizes generally not exceeding 3% of the fund.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

24/12/19 to 24/12/20 24/12/20 to 24/12/21 24/12/21 to 24/12/22 24/12/22 to 24/12/23 24/12/23 to 24/12/24
Annual return -18.13% 31.83% -8.05% 5.33% 9.47%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Mark Niznik
Manager start date: 22 October 2007
Manager located in: Edinburgh

Mark has managed the Artemis UK Smaller Companies Fund since joining the firm in 2007. His investment career began in 1985 with Legal & General, which was followed by a stint as a private client fund manager at Greig Middleton & Co. In 1992, he joined Perpetual covering the UK part of its Global Smaller Companies Fund; the UK Smaller Companies Core Fund and the Invesco Perpetual UK Smaller Companies Investment Trust. Then Mark moved to Standard Life Investments as a small/mid-cap fund manager, running its UK Opportunity Fund from launch in November 2002 and its in-house small-cap pension funds.

Manager Name: William Tamworth
Manager start date: 31 March 2016
Manager located in: London

William works with Mark Niznik managing the Artemis UK Smaller Companies Fund. He graduated from Oxford in 2006 with a degree in economics and management and joined Citigroup as an equity research analyst in the UK small- and mid-cap team. William moved to Liberum in 2009, where he continued to work in small- and mid-cap equity research, specialising in support services. A CFA charterholder, William joined Artemis in 2015.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now