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.

  • 160.32p
    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.

  • 0.60%

    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 20 January 2022, fund commentary last updated 21 October 2021

The fund aims to provide long-term capital growth by investing in the shares of small-sized UK companies – at at least 80% of its assets are invested in UK firms with a typical market value of between £100m and £500m. The fund is run by London-based boutique Tellworth, where managers Paul Marriage and John Warren take a bottom-up fundamental research approach to create a portfolio of mainly growth but also value stocks. The team have no sector or style biases but they like companies with differentiated products and committed management teams. Their holdings include window and patio door group Tyman, glasses maker Inspecs and low-cost fitness chain The Gym Group.

Fund summary

Sector UK Smaller Companies
Structure OEIC
Launched November, 2018
Size £467m
Yield 0.60%
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

The manager’s investment universe encompasses the 1,250 companies which make up the bottom 10% of the UK market by value. This is initially whittled down by avoiding unprofitable ‘blue-sky’ names, stocks in sectors such as oil & gas and mining and those with a market value of under £50m. Marriage and Warren then use proprietary screens on around 600 stocks such as an economic thermostat to give insights on short-term conditions, and an accounting screen to eliminate companies with risky financial positions and poor governance. The managers then undertake a bottom-up investment process, looking at companies based on their growth potential and value. They use a P3M model (product, market, margin, management) to find quality growth names looking at whether they have a differentiated product, are a market leader, can generate sustainable high margins and have managers aligned to shareholders’ interests. When it comes to value the managers look for signs of self-help at a business such as management change or cost-savings programs. Perhaps they have been misunderstood and are good companies operating in difficult markets. The pair attend over 300 company meetings a year, talking to chief executives and chief financial officers. The portfolio typically holds between 40 and 60 names with the historical balance being 75% growth and 25% value. The maximum position size is 5% and the typical holding period is a minimum 12 months. However, many stocks have been held for three years or more.

Paul Marriage is one of the most experienced UK small-cap managers, having held numerous positions in the sector for firms such as Insight, Cazenove and Schroders since the early 2000’s. He has an excellent track record of outperformance and enjoys the backing and expertise of co- manager and long-term colleague John Warren. The clear and flexible investment philosophy – long only small cap with a mixture of growth and value to take advantage of all business cycles – is a continuation of the strategy Marriage and Warren ran at both Cazenove and Schroders. The pair founded the Tellworth boutique in 2017 and own a majority share, which means that their interests are very likely to be aligned with investors. This is a core option for investors in the IA UK Smaller Companies peer group.

Manager research

Average monthly relative returns

  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 -0.34%
  • 21/22 0.72%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.35%
  • 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 16.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.35%. 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 December 2021

3.2% Harworth Group Plc
3.2% Vitec Group Plc (The)
2.8% Watkin Jones
2.7% Volution Group Plc
2.6% Wincanton Plc
2.5% Ricardo
2.5% Tyman Plc
2.4% Premier Foods Plc
2.3% Gresham Technologies Plc
2.3% Mattioli Woods
Source: Trustnet


Circa 50 names.


No formal sector constraints.

Key Investor Information