Miton is adding to its fund range with the launch of the LF Miton US Smaller Companies Fund on 14 March 2018.
The fund will invest in companies with a market value of between USD100 million and USD6 billion, at the time of purchase, and which the managers view as having significant growth potential. It will be managed by Nick Ford and Hugh Grieves, managers of the LF Miton US Opportunities Fund, who collectively have over 40 years’ experience in managing US equity funds.
Nick Ford has previously managed the SWIP American Smaller Companies Fund, the top performing fund in the IA North America Smaller Companies sector over five years to 30 June 2012.
The new LF Miton US Smaller Companies Fund will invest in a portfolio of between 70-100 companies. Almost a quarter of the initial portfolio will be weighted in the financials sector, with almost another quarter invested in information technology companies. The remainder of the portfolio will be made up of the following sectors; consumer discretionary, consumer staples, energy, healthcare, industrials, materials, real estate, telecommunication services and utilities.
Neil Bridge (pictured), Miton’s Head of Sales, says: “The US market is dynamic and the smaller companies universe lends itself to an active management approach. This fund will complement Miton’s existing equity fund range by offering investors further choice in US equity markets. This is an exciting opportunity for those investors who are looking to achieve capital growth by accessing fast growing and disruptive US smaller companies.”
Nick Ford, Miton US fund manager, says: “We believe that investors will benefit from a smaller companies fund which is focused on significant growth opportunities. We consider the US to be one of the most active geographies for finding such entrepreneurial companies. It provides a business friendly environment which is open to new ideas and business models, while providing easy access to early stage capital.”
Hugh Grieves, Miton US fund manager, adds: “The US market has proven itself to be an excellent investment, with low inflation and interest rates supporting its rapid growth. This was helped by the growth of corporate profits at double digit rates last year, the fastest rate since the post recessionary bounce of 2011.
“The passing of the Tax Cuts and Jobs Act at the end of 2017 added incentives to accelerate capital expenditures and bring back US historic profits stranded overseas. This provides a further, recurring windfall for US corporations and boost to confidence. Companies with more of a domestic focus are set to be the biggest beneficiaries, including small cap companies within the banking, industrials and consumer discretionary sectors.”
The Fund will sit within the IA North America Smaller Companies sector. The F class shares have an annual management charge of 0.50 per cent.