Jupiter UK Smaller Companies U1

A UK small cap fund managed in a conservative and pragmatic style.

  • 236.60p
    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.

  • 239.10p
    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?

  • 0.00%

    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!

  • 0.94%
    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).

  • 0.94%
    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.

  • 0.30%
    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…

Prices as at 30 July 2021

The fund invests predominantly in the Numis Smaller Companies universe including AIM and is managed by a respected UK small cap team. The investment process combines a macro-economic overlay with detailed bottom up company analysis, seeking under-researched assets with extensive growth prospects. The fund is style-agnostic and will seek to outperform across all market conditions. Smaller companies’ shares can be more volatile and less liquid than larger company shares, so smaller companies funds can carry more risk.

Fund summary

Sector UK Smaller Companies
Structure OEIC
Launched April, 2014
Size £1,402m
Yield 0.30%
Charging basis Income
Dividends paid 30 Sep

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.94%
Ongoing charges figure 0.94%

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Investment process

The investment philosophy is a balance of top down and bottom up inputs, with a flexible approach to value and growth tilts, depending on the macro view taken. Top down analysis factors are economic growth, interest rate cycle, industry trends. Bottom up factors include management, earnings growth, re-rating potential and financial stability. Weekly stock selection meetings led by Nickols are held with each analyst in the team covering their own sectors. Internal conclusions are then compared to sell-side analyst forecasts. The team adopts a screening process to identify potential stock specific opportunities. The emphasis will be on companies that have the ability to grow profits faster than the market over a sustained period, a higher probability of producing an earnings surprise or the potential for a re-rating.

Manager research

Average monthly relative returns

  • 16/17 1.07%
  • 17/18 1.00%
  • 18/19 -0.19%
  • 19/20 1.35%
  • 20/21 -0.46%

Bestinvest MRI

  • 3 years 0.23%
  • 5 years 0.55%
  • Career 0.40%
  • 3 years 78.80%
  • 5 years 98.80%
  • Career 100.00%

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

Daniel Nickols

Nickols joined Old Mutual in 2001 following the integration of Gerrard Investment Funds, where he had worked for the previous two years. He is now head of their UK Small and Mid Cap team. His involvement with smaller companies began in September 1995, when he joined Albert E Sharp as a specialist salesman. He switched to fund management in May 1997, working on the Albert E Sharp Smaller Companies fund. After graduating from Cambridge University in 1992 with a degree in modern and medieval languages, he joined Deloitte & Touche, before moving to the European equities division of Morgan Stanley in June 1994. He is IIMR qualified.

Track record

Daniel Nickols has 19 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.4%. During the worst period of relative performance (from January 2009 - March 2010) there was a decline of 14% relative to the index. The worst absolute loss has been 44%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -44.00% (October 2007 - October 2008)
Relative -14.00% (January 2009 - March 2010)

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 31 July 2020

3.4% Boohoo Group Plc
3.2% Liontrust Asset Management Plc
3.2% The Hut Group
3.1% Gamma Communications Plc
2.6% S4 Capital Plc
2.5% Onesavings Bank Plc
2.4% Ascential Plc
2.3% Clinigen Group Plc
2.2% Smart Metering Systems Plc
2.1% Chemring Group
Source: Trustnet

Sector breakdown

Financials 26.00%
Industrials 24.00%
Consumer Services 19.00%
Technology 10.00%
Consumer Goods 5.00%
Unquoted Investments 4.00%
Telecommunications 3.00%
Health Care 3.00%
Basic Materials 3.00%
Money Market 2.00%

Portfolio

Typically 80-100 stocks. Position sizes 0.5-2.5%.

Constraints

Maximum 5% in any individual holding. Minimum of 80% in index stocks (Numis Smaller Companies index).

Key Investor Information - Income

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Key Investor Information - Accumulation

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