THE
INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT MAY CONSTITUTE
INSIDE INFORMATION AS STIPULATED UNDER THE UK'S MARKET ABUSE
REGULATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
Invesco Perpetual
UK Smaller Companies Trust plc
Change of
Investment Management Arrangements
-
Invesco Perpetual UK
Smaller Companies Trust plc to appoint Artemis Fund Managers
Limited as investment manager
-
No change to investment
objective, investment policy or dividend policy
-
Shareholders to benefit
from a reduction in management fees as well as an initial nine
month fee waiver
-
Company to be renamed in
due course to reflect the change in management and to leverage
Artemis’ strong brand in UK equities
Introduction
The Board of Invesco
Perpetual UK Smaller Companies Trust plc (the “Company”) is pleased
to announce that, following a review of the Company's investment
management arrangements, it has entered into a conditional
agreement to appoint Artemis Fund Managers Limited (“Artemis”) as
the Company's investment manager.
The Company's core
investment objective and policy, being to achieve long-term total
return for shareholders primarily by investment in a broad
cross-section of small to medium sized UK quoted companies, will
not change.
The Company's portfolio
will be managed by Mark Niznik and
Will Tamworth. They have worked as co-managers at Artemis since
2015 and each brings considerable prior expertise in the UK
small-cap equity space.
The fund managers will
seek to capture the small cap performance premium (3% annualised
since 1955), by employing a research-driven, stock picking process
to select portfolio companies from the ~1,000 companies that make
up the smallest 10% of the UK market by market capitalisation. The
fund managers look for good businesses, with attractive financials
and seek to acquire them at reasonable valuations. The portfolio
will typically contain between 50 and 70 stocks, constructed
without reference to the benchmark, though remaining economically
diversified.
The Board believes that
the change in investment manager will provide the following
benefits to shareholders
-
Top quartile track
record: The Artemis team have a strong investment track
record. The open-ended Artemis UK Smaller Companies Fund is ranked
top quartile over 3, 5 and 10 years relative to the IA UK Smaller
Companies peer group (to 29 November
2024). Since taking over management of the Artemis UK
Smaller Companies Fund in 2011 the team has returned 259% compared
to 185%% for the Deutsche Numis Smaller Companies (ex IT) Index and
181% for the IA UK Smaller Companies sector
-
Reduction in
fees: 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)
-
Waiver of
management fees: Artemis will waive the first nine months
of management fees post appointment
-
Alignment:
The fund managers, alongside other individuals at Artemis, have
committed to invest a significant amount into the
Company
-
Marketing:
Artemis’s distribution capability will assist in finding new demand
for the Company’s shares
Information on the
Artemis group
Artemis is an independent
and owner-managed fund manager, offering a range of funds which
invest in the UK, Europe, the US
and around the world. As a dedicated, active investment house, it
specialises in investment management for both retail and
institutional investors. The firm was launched in 1997. The main
operating entity, Artemis Investment Management LLP, is a Limited
Liability Partnership and currently has 25 partners, who are fund
managers and other key individuals at the firm. www.artemisfunds.com
Details on the
appointment of Artemis
Artemis will receive an
annual management fee of 0.65% of the net assets of the Company up
to £50 million and 0.55% thereafter.
As a contribution to the
costs of the change of investment manager, Artemis will waive the
management fee payable to it for a period of nine months from its
appointment as investment manager, as well as making a significant
contribution to the Company’s marketing budget.
The investment management
agreement shall be terminable by either party serving six months'
notice.
Expected
timing
The Company has provided
notice to terminate the appointment of Invesco Fund Managers
Limited as the Company's AIFM, company secretary and
administrator. Subject to regulatory
approval and finalising transitional arrangements, Artemis’s
appointment as investment manager and AIFM is expected to become
effective in Q1 2025. A further announcement will be made in due
course.
Bridget Guerin, Chairman,
commented:
““Having reviewed a
variety of options, Artemis stood out as not only top performers
but also very enthusiastic about taking over the management of IPU.
To reinforce their commitment to managing the Company, both fund
managers and other staff members within Artemis have agreed to
invest meaningful amounts of money into the fund. The Board and
Managers are excited about the prospects for UK small companies
which are now trading at historically cheap
levels.””
Mark Murray, Senior Partner, Artemis,
commented:
“We are delighted that
the Board has appointed Artemis to manage the
Company.
Mark and
Will have an outstanding investment
proposition.
Combined
with Artemis’ strong brand and marketing expertise, we believe we
have a compelling proposition to deliver success for the Company
and its shareholders.”
For further information
please contact
Invesco Perpetual
UK Smaller Companies plc
|
via J.P. Morgan
Cazenove
|
Bridget
Guerin
|
|
|
|
J.P. Morgan
Cazenove
|
+44 (0)20 3493
8000
|
William Simmonds, Rupert
Budge
|
|
|
|
Artemis
|
+44 (0)20 7399
6039
|
Lawrence
Gosling
|
|
LEI:
549300K1D1P23R8U4U50
Past performance cannot be
relied on as a guide to future performance. Performance data is
sourced from Deutsche Numis, Artemis, Lipper Limited, class I
accumulation units in GBP. Data is total returns with dividends
and/or income reinvested, net of all charges. Performance does not
take account of any costs incurred when investors buy or sell the
fund.