Rathbone Smaller Companies Fund

Rathbone Smaller Companies Fund

Definition of product

• Stockpicking growth fund
• Focus on quality, sought through rigorous analysis
• A large universe, where a relative lack of coverage leads to unrecognised opportunities

Fund objective

The objective of the fund is to achieve growth in total returns from a portfolio of securities where, at the time any individual security is acquired, the issuing company’s equity market capitalisation will normally, but not necessarily, be below £500m. The fund will invest predominantly in companies with a full listing on the London Stock Exchange or on the Alternative Investment Market (AIM). It may include those on recognised stock exchanges outside of the UK, but this is predominantly a UK-oriented fund. The fund will not invest in companies which, at the time of investment, are included in the FTSE 100 Index. There is no industrial sector or geographic specialisation.

Investment style

This is a stock-picking fund, exploiting opportunities at the smaller end of the market. We are focused on company fundamentals - strong management, balance sheets, cashflows, the ability to maintain price and the ability to fend off competitors - all the features of which are likely to drive quality, long term earnings growth. The fund does not chase the latest investment fashion. The aim is long-term, consistent performance, and we believe this is best achieved through a focus on quality companies.

Why invest?

• Disciplined stock selection

Available for lump sum investment or regular savings into an ISA or as an unwrapped unit trust lump sum or savings plan. Charges are 5.5% initial charge and 1.5% per annum annual management charge.

"Investors in our funds will be treated as 'retail clients' for the purpose of dealing in units either when buying units from us or selling them back to us. You will enjoy all the protections provided to retail clients by the regulations."