MW Smaller Companies Fund
 
Fund launch date
 26/03/2001
Fund size
at 18/10/2019
£139m
Personal class
Unit class launch date
01/01/2013
Unit class size
£139m
Current price
per personal unit
at 12pm on
 18/10/2019
 
£56.434xd
Change in price (+/-)
 +£0.061
Dividend yield
 
1.3%
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Your fund holding value based on above price: £

Objectives and policy

The investment objective of the Smaller Companies Fund is to grow the real value of investors’ capital and income. Investments will primarily be in global smaller companies, which do not form part of the leading market indices. An equal emphasis will be placed on the generation of income and on capital growth. 

The fund may invest in any geographical area and any economic sector. In accordance with the firm’s ethical principles, the fund has no investments in tobacco companies or companies directly involved in the development of arms. 

Composition

The fund holds a portfolio of direct investments in a diversified range of international smaller companies. Individual investments and geographic allocations are continually evaluated and adjustments are made according to the relative merits of each holding and the opportunities in the smaller company sector offered by different international markets.

Structure

The fund is structured as an authorised unit trust. Its structure provides investors with certain institutional safeguards and simplicity of administration. Furthermore, as no tax is suffered on capital gains realised within the fund, there are no tax constraints on active management of fund holdings and individuals benefit from the deferral of tax on capital gains (if any) until the point at which capital is withdrawn.

Asset allocation
  • 1%
    Cash
  • 99%
    Equities

If you cannot see this chart, please download the Quarterly Fact Sheet

Geographic allocation
  • 34%
    UK
  • 30%
    Europe
  • 24%
    USA
  • 6%
    Japan
  • 6%
    Australasia

If you cannot see this chart, please download the Quarterly Fact Sheet

Prospects for the world economy have deteriorated, exacerbated by persistent trade tensions. Many investors believe interest rates will be lowered. However, where rates are already negative, central banks are likely to consider more unorthodox, and less predictable, stimulus measures. Miscalculations could have severe ramifications, particularly if as a result widespread expectations of falling rates prove misplaced.

Government spending may be necessary to spur economic growth and will, in many countries, require further borrowing. Though inexpensive by historic standards, the proportionate level of government debt to GDP has never been higher. It has almost doubled since 2007. Even the most reputable treasuries may find their credentials tested.

In the US, growth is slackening. Any slowdown would undermine President Trump's re-election campaign, which will be tied to the prosperity of the country. Political pressures on the Federal Reserve are set to intensify while government expenditure is likely to increase. Trade negotiations between the US and China continue. Despite little progress to date, some accommodation may be possible. Falling demand and a strong dollar have hurt US farmers, a strong support base for President Trump. They may push their government towards a compromise, particularly if the election looks set to be very tight.

The UK's eventual relationship with the EU remains unclear at the time of writing. Prime Minister Boris Johnson's efforts to force through a rapid departure from the trading bloc have deepened divisions. A general election looks imminent. Persistent uncertainty has hurt business sentiment; companies have postponed investment and manufacturing activity is falling. Productivity growth remains disappointing. However, consumers enjoy record low unemployment, rising real incomes and cheap credit, and some sectors have proved resilient even if they would be vulnerable to a general slowdown.

The outlook for the eurozone has worsened. German exports have fallen, and economic sentiment slumped to levels evident during the financial crisis. Trade between member states contracted at its fastest rate for over six years in June. Meanwhile, the European Central Bank's scope for stimulatory responses is constrained.

Elsewhere, Japan still wrestles with deflation despite a cocktail of stimulatory measures. An ageing population restricts domestic growth, while exporting businesses suffer from the strong yen. Yet the country has so far avoided recession and is home to companies with world-leading products.

We believe long-term investment in smaller companies can be particularly rewarding. Over the past 30 years, global investment institutions have come to dominate equity markets. This trend has been reinforced by the growth of large passive investment funds whose aim is simply to track market indices. Institutional buying naturally has been concentrated on the biggest and most liquid stocks, rather than smaller companies, however attractive the values and prospects of the latter may be. As a specialist private client firm, McInroy & Wood is much less hampered by liquidity considerations in its investment selections, and is in a strong position to exploit opportunities in the smaller company sector on behalf of its clients.

Total return on investment
net of charges and assuming re-investment of dividends

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Total return (£)
Value of initial £1,000 investment
Retail Price Index (RPI)
Total returns
Total return (%)
to 30th September 2019
 
1 year
 
3 years
 
5 years
 
10 years
Since launch
 26/03/2001
Cumulative return
-0.6
39.7
90.6
250.8
699.8
Cumulative Retail Price Index (RPI)
2.6
10.3
13.5
36.1
69.6
Annualised return
-0.6
11.8
13.8
13.4
11.9
Annualised Retail Price Index (RPI)
2.6
3.3
2.6
3.1
2.9
Discrete annual returns
Total return (%)
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
12 months to 30th September
  • -0.6
  • 21.7
  • 15.5
  • 28.5
  • 6.2
  • 5.6
  • 24.6
  • 8.7
  • 3.4
  • 24.5
Historic prices and dividends
Personal class
Legacy class (closed 21/12/2016)
General
Launch date
26/03/2001 
Manager
McInroy & Wood Portfolios Ltd 
Investment adviser
McInroy & Wood Ltd 
Custodian & Trustee
Bank of New York Mellon (International) Limited 
Fund size (at 18/10/2019)
£139m
Independent auditor
PricewaterhouseCoopers LLP 
Fund status
Authorised unit trust 
Reference currency
GBP 
IA sector
Global 
Valuation and dealing
12pm on each UK business day 
Valuation basis
Forward, single-price basis 
Unit type
Income (reinvestment facility available) 
Min. initial and subsequent investment
£1,000 
Regular savings facility
£100 monthly minimum investment 
Reporting periods
28th February and 31st August 
Current tax year ISA/JISA limits
£20,000 / £4,368 
Dividend information
Ex-dividend dates
1st March and 1st September 
Payment dates
On or before 30th April and 31st October 
Most recent dividends:
Personal class
 
 
Dividend
rate
Ex-dividend
date
Payment
date
Interim
20.000p
02.09.19
31.10.19
Final
53.829p
01.03.19
30.04.19
Unit class
Personal class
Launch date
 01/01/2013
Unit price
(at 18/10/2019)
 
£56.434xd
Dividend yield
 1.3%
SEDOL
 B8NC4D9
ISIN
 GB00B8NC4D98
Fees and charges
Personal class
Initial charge
 Nil
Ongoing charges figure
 1.15%
(including 1.00% annual management charge)
Exit charge
 Nil
Performance fee
 Nil

If you are considering investing in the fund or wish to manage existing investments all the information and forms you need can be downloaded using the links below. All investments require the completion of the appropriate form which should then be sent to the postal address below.

Our funds are also available from various platforms. These are categorised as either Retail (for anyone investing directly in their own right) or Advisor (for investments made via a professional intermediary).

Please do not hesitate to contact our Unit Trust Team should you have any questions.

Fund documentation
Contact us
If you require further information or clarification, or would simply like to discuss any aspect of the services we provide, please call us on the number below and we will make sure the right person speaks to you.

Telephone

+44 (0)1620 825 867

Postal address for mailing of all forms

McInroy & Wood Portfolios Limited
PO Box 12177
Chelmsford
CM99 2EA

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