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 Prospectus.
- 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.
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 here.
*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