HSBC UK Smaller Companies

The fund invests in the smaller companies market.

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    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

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    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

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    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.25%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.38%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

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    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Fund data last updated 25 July 2003

Although the smaller companies team is small they should benefit from being part of the wider UK team. The approach is essentially aggressive stockpicking but within a sensible portfolio framework.

Fund summary

Sector UK Smaller Companies
Structure X-OEIC
Launched September, 1996
Size £17m
Yield 0.00%
Charging basis Income
Dividends paid 15/11.

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.38%

Allocation

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Investment process

The aim of the Fund is to provide a total return consistent with that of smaller company shares in the UK through direct and indirect investment mainly in companies which, at the time of initial investment, are outside the top 350 companies by market capitalisation. A fundamental but flexible style is adopted which combines both top down and bottom up views. The top down process is essentially more of an ideas generator, in that the weekly and monthly UK team meetings will highlight potential growth areas. The primary focus is on a core holding of growth stocks which make up approximately 60% of the portfolio. The remaining 40% in generally invested in shorter term trading opportunities. This might include selecting companies which might benefit from a change in the " business cycle". Stocks are reviewed on a continuous basis and company meetings are considered essential - this will typically lead to around 300 company contacts a year.

Manager research

Average monthly relative returns

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Bestinvest MRI

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  • Career 0.00%
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Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

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About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 28 February 2013

2.58% Cineworld Group
2.55% Hill & Smith Hldgs
2.53% Keller Group
2.39% Smiths News Plc
2.25% Sportingbet Plc
2.24% Trinity Mirror
2.23% Carclo
2.15% Lookers
2% Lavendon Group
1.94% Greencore Group
Source: Trustnet

Sector breakdown

Industrials 36.00%
Consumer Services 23.00%
Financials 15.00%
Consumer Goods 8.00%
Money Market 5.00%
Technology 4.00%
Basic Materials 4.00%
Health Care 4.00%
Oil & Gas 2.00%

Portfolio

The top twenty holdings will generally represent around 50% of the portfolio. There are currently around 80 stocks within the portfolio. The manager has a favoured range of 70-80 holdings.

Key Investor Information - Income

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Key Investor Information - Accumulation

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