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Which fund for Micro Caps?
Posted: August 12th, 2021, 1:43 am
by Shaker
Which fund for Micro Cap exposure?
Re: Which fund for Micro Caps?
Posted: August 12th, 2021, 9:13 am
by flyer61
Why not consider a VCT? You will certainly get exposure to 'micro caps'.
https://www.wealthclub.co.uk/
Re: Which fund for Micro Caps?
Posted: August 12th, 2021, 9:21 am
by yieldhog
For example: BVT
Y
Disclosure: I own some.
Re: Which fund for Micro Caps?
Posted: August 12th, 2021, 1:31 pm
by shawsdale
At the risk of repeating points made on a recent "Regional Smaller Companies" thread:
- There are sound liquidity-related reasons for preferring a closed-end investment vehicle in the micro cap domain.
For UK micro caps the best-performing in the last few years is the River and Mercantile UK Micro Cap trust (RMMC). There is also the Miton UK Micro Cap trust (MINI).
- There are several open-ended UK Micro cap funds, such as those managed by Octopus, Liontrust and Marlborough.
- It would be interesting if anyone knows of a Global Micro Cap fund/trust that is widely available to UK-based retail investors.
The likes of Grandeur Peak Global Micro Cap do not seem readily accessible.
- Edinburgh Worldwide (EWI) is multi-cap, for instance holding 4.4% in Tesla as of 30th June 2021, and Smithson (SSON) together with the open-ended Global Smaller Companies funds (like those run by the company formerly known as Aberdeen Standard and Liontrust) and seem more mid cap and small cap than specifically micro cap.
As well as Venture Capital Trusts, pre-IPO companies as accessed by the Chrysalis trust (CHRY) could be worth some research.
Re: Which fund for Micro Caps?
Posted: August 12th, 2021, 6:34 pm
by AWOL
With charges ranging from 2-8% VCTs make RMMTs ongoing charge of 2.55% look competitive (in both cases performance fees are big contributors). Whilst performance charges are something that I can reluctantly accept I think it's a good idea for investors to look very hard at charges and consider if in a low return environment they can afford to give up so much.
Re: Which fund for Micro Caps?
Posted: August 13th, 2021, 1:43 am
by Shaker
VCT charges put me off. Really hideous on some of them. Much prefer OEIC or IT, or even ETF.
Re: Which fund for Micro Caps?
Posted: August 13th, 2021, 7:03 am
by Spet0789
Shaker wrote:VCT charges put me off. Really hideous on some of them. Much prefer OEIC or IT, or even ETF.
I agree with you on the charges but if you can claim the tax relief, that pays them for 10 years or so!