This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

TM Tellworth UK Smaller Companies F GBP

Targets capital growth from smaller UK equities. Run by London-based UK specialist boutique Tellworth.

  • 167.30p
    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.

  • -
    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?

  • 5.00% 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!

  • 0.85%
    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).

  • 0.95%
    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.

  • 0.10%

    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 17 September 2021, fund data last updated 25 July 2019

The fund aims to provide long-term (in excess of five years) capital growth by investing in equities of small-sized UK companies. Working for their own boutique Tellworth in London, managers Paul Marriage and John Warren invest in the bottom 10% of the UK equities market by value (typically companies below £2bn), with a particular focus on those from £50-£500m in size. They employ a bottom-up process, primarily looking for growth stocks but also taking advantage of value opportunities.

Fund summary

Sector UK Smaller Companies
Structure OEIC
Launched November, 2018
Size £479m
Yield 0.10%
Charging basis Income
Dividends paid Acc units only


Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.85%
Ongoing charges figure 0.95%


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Investment process

This is a long-only small cap fund and is a continuation of the investment strategy that managers Marriage and Warren implemented at both Cazenove and Schroders. The investment universe is the Numis Smaller Companies (-ITs) Index, which contains approximately 1,250 companies making up the bottom 10% of the UK market by value (typical max size of £2bn). The managers aim to generate returns using a bottom up stock selection approach based on growth potential and value. Marriage follows a three-stage process: Stage 1 – Key rules (no ‘blue sky’ companies, oil & gas, mining or biotech; only UK registered / UK listed businesses (easy access to management and efficient dissemination of information); >£50m market cap). Stage 2 – Run proprietary data-driven screens. Stage 3 – Bottom up stock analysis - meet CEOs and CFO; assess P3M for growth stocks (product, market, margin, management) or seek value opportunities. The fund does not take a ‘thematic’ approach; sector positioning is an output rather than a key input into the process. Typically, stock turnover has been between 30-50%.

Paul Marriage is one of the most experienced UK small cap operators, having been running money in the sector since the early 2000s (head of small cap at Insight, and subsequently managing a UK small cap fund at Cazenove and at Schroders). His experience means he operated through the financial crisis with reasonably good success, as well as through a period of considerable inflows/outflows in assets whilst at Schroders. Marriage and co-manager John Warren founded boutique Tellworth in 2018 and own a majority of the company, giving us confidence that their interests are aligned with investors.The Tellworth fund benefits from low asset under management, important for a small-cap fund, which Marriage has committed to capping.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.01%
  • 20/21 0.68%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.36%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 99.70%

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

Paul Marriage

Marriage launched Tellworth Investments in October 2017. He previously worked for Cazenove Capital from 2005, then became Head of UK Dynamic at Schroders in 2013 after the acquisition of Cazenove. Prior to this he worked for Insight from 1998, initially as an Analyst researching UK smaller companies and from 2003 as manager of its UK small company funds. After graduating he joined Willis Group, the Global Risk Management Consultants, as a Reinsurance Broker for energy companies. He then moved into investment management with Creditanstalt, an Austrian bank, as an Eastern European Equity Analyst. He is a graduate of University College, Oxford with a degree in Modern History and is an Associate of the Society of Investment Professionals (ASIP).

Track record

Paul Marriage has 16.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.36%. During the worst period of relative performance (from June 2008 - March 2009) there was a decline of 16% relative to the index. The worst absolute loss has been 55%. 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 -55.00% (May 2007 - February 2009)
Relative -16.00% (June 2008 - March 2009)

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.


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Top 10 holdings

Data accurate as at 31 July 2020

2.6% Codemasters Group Holdings Plc
2.5% Gresham House Plc Ord 25p
2.3% Ig Design Group Plc
2.2% Calisen Plc
2.2% Smart Metering Systems Plc
2.2% Harworth Group Plc
2.1% Wincanton Plc
2.1% Secure Income Reit Plc Ord 10p Reg S
2.1% Caretech Hldgs Plc
2% Aptitude Software Group Plc
Source: Trustnet


Circa 50 names. 75% of the fund to be invested in small cap stocks with the cap range of c£100-500m. 1-3% position sizes


No formal sector constraints. Underlying equity ownership typically sub 10%, although can be higher from time to time.

Key Investor Information