Small-cap funds have performed strongly over the past year, with the benchmark IMA UK Smaller Companies index up by 17.6%. However, Liontrust UK Smaller Companies Fund (which has a total expense ratio of 1.68%) has done even better, delivering 21.7%. And it has more than doubled over the past five years.
The fund is run by small-cap veteran Anthony Cross and Julian Fosh. They aim to identify stocks with lasting competitive advantages. In particular, they focus on intellectual property, distribution and the ability to attract recurring business. They also look for evidence that both employers and managers are committed to the company they expect directors to hold at least a 3% stake.
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Liontrust UK Smaller Co'stop ten holdings
| Dechra Pharmaceuticals | 3.9% |
| Ffastfill | 3.9% |
| Iomart | 3.7% |
| Paypoint | 3.7% |
| Charles Stanley | 3.7% |
| Brooks Macdonald | 3.4% |
| Craneware | 3.3% |
| NCC | 3.3% |
| Wilmington | 3.1% |
| RWS | 3.1% |
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