Quantcast Downing Strategic Micro-Cap Investment Trust PLC | Downing

Downing Strategic Micro-Cap Investment Trust PLC

The Trust seeks to provide investors with long-term capital growth through a concentrated portfolio of 12-18 UK listed companies that typically have a market capitalisation of below £150 million (at the time of investment). We define these as micro-caps. The Trust intends to take an influential, strategic position (a 3% - 25% equity stake) in each underlying business. Full details of the Offer are available in the .

We are pleased to announce that the Downing Strategic Micro-Cap Investment Trust plc has raised £54.5 million (net), as announced by the  on 3 May 2017. 

Please note, this offer is now closed.

 

For shareholder information, please click .

Introduction

 

 

Key points

  • The Trust is targeting a 15% p.a. compound return over the long term (please note this is a target only and is not guaranteed).
  • Our Public Equity team applies a private equity style approach to investing in listed micro-cap securities. They proactively engage and work alongside aligned management teams to drive returns.
  • An independent Board provides additional oversight and monitoring of all investment decisions.
  • There is a redemption opportunity after three years (at the Directors’ ultimate discretion) and a buy-back mechanism for up to 14.99% of issued share capital (subject to shareholder approval).

Why we’re different

Drawing on Downing’s 30 years of experience, our investment style is more akin to private equity than to typical public market investing. This is apparent in our extensive due-diligence process, which includes visiting potential investee companies, engaging with both operational and board management and ensuring management teams are aligned.

The Trust aims to take influential positions in a focused portfolio of 12 – 18 UK micro-cap companies. Having a focused portfolio means we can devote more time to understanding the underlying investments and their markets, which allows us to build strong relationships with management teams. Our value-led investment style favours a proactive approach which we believe can help smaller companies realise their potential.


Track record

The Trust is closely aligned with our top-rated micro-cap OEIC, the MI Downing UK Micro-Cap Growth Fund. Since Judith MacKenzie began managing the Fund in February 2011, it has produced returns of 14.6% p.a.*, with lower volatility than its benchmark, the Numis Smaller Companies Index plus AIM excluding Investment Companies** (please remember past performance is not an indicator of future performance).

Find out more about the track record of our micro-cap OEIC by clicking .

*MI Downing UK Micro-Cap Growth Fund performance (Class B shares, correct as of 28 February 2017).

**Source of all fund data is Maitland Institutional Services, source of all index data is Thomson Reuters for the period 4 February 2011 to 28 February 2017.


Our typical investment process


Meet the Managers

Judith MacKenzie

Alyx Wood

James Lynch

Nick Hawthorn

 

Important Notice

Investing in our products will place your capital at risk and you may not get back the full amount invested. Any tax treatment may be subject to change and the availability and value of the reliefs depend on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status.

Further information can be found at HMRC’s website. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher price fluctuations and are likely to be more difficult to sell than shares quoted on the London Stock Exchange Official List. Website content is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in any of our products.

Important Notice

Downing’s investments place your capital at risk and you may not get back the full amount invested. Past performance and forecasts are not a reliable guide to future results. Tax treatment may be subject to change and depends on individual circumstances. Smaller company shares are likely to have higher volatility and liquidity risks than other types of main market listed instruments. We recommend that you seek professional independent financial advice before investing. We do not offer investment or tax advice.

By clicking below you confirm you have read and understood the information above.