MAM Funds is set to launch its UK smaller companies fund for managing director Gervais Williams in the middle of December.
The fund, called the CF Miton UK Smaller Companies fund, will be co-managed by Martin Turner. It will invest primarily in UK-quoted smaller companies and invest at least 80 per cent of its assets in the UK listed companies that form the bottom 10 per cent by market capitalisation.
Some 50 per cent of the fund will be invested in companies with a market cap below £100m, which was the same remit for investment trust Gartmore Growth Opportunities that was focused on smaller companies. Williams ran this trust at Gartmore from March 1993 where he was head of smaller companies at the firm.
The Gartmore fund had about 150 holdings. The CF Miton UK Smaller Companies fund will have a maximum of 120 stocks. There will be about 25 stocks that have a zero to £10m market capitalisation and 60 stocks with a £10 to £25m market capitalisation. The typical stock size for a top 10 weighting in the fund will be 3 to 4 per cent.
About 25 to 60 per cent will be held in small cap and Alternative Investment Market stocks, up to 15 per cent will be in fledging stocks and up to 25 per cent will be invested mid-cap stocks. The fund is looking to raise £5m pre launch.
Williams currently runs the £33m Acuim UK Multi-cap Income fund with Turner. It has delivered 18.8 per cent over the past year to 8 November, compared twitho an average of 11 per cent returned by the IMA UK Equity Income sector.