Fund of the week: The Neil Woodford of small caps
This small-cap fund has returned over 80% over the past five years, compared to a 14.1% sector average, by investing in firms with resilient business models and predictable earnings.
There are a small number of elite fund managers who are so good that people buy their funds for exposure to them rather than to their portfolio, says Richard Troue of Hargreaves Lansdown. Harry Nimmo is one of those fund managers. "He is the Neil Woodford of the smaller company world," says Mark Dampier in the Independent.
Over the past five years, Nimmo's Standard Life Investments UK Smaller Companies Trust has returned 80.8% compared to a 14.1% sector average. Earlier this year the fund won the UK Smaller Companies category at the Moneywise Investment Trust Awards for the fourth year in a row.
Like Woodford, Nimmo tends to avoid companies that are highly sensitive to economic conditions, instead going for firms with resilient business models and predictable earnings, says Dampier.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
One example of this is Asos, the online fashion retailer, which makes up 4.6% of the fund's portfolio. The share price has risen by 153% over the past year and consistently beats expectations as its international business grows. This helped the fund grow by 38.5% in the 12 months to 30 June, against a 24.4% rise in the Hoare Govett Smaller Companies Index.
Nimmo has recently added Hikma Pharmaceuticals, the Jordanian generic pharmaceuticals company, to his portfolio as spending on healthcare is "rising rapidly" in the Middle East, where Hikma is the market-leading company. The trust is trading at a 4.04% discount to NAV at present and the total expense ratio is 1.2%.
Contact: 0131-245 2676.
table.ben-table table { border: 3px solid #2b1083;font: 0.928em/1.23em verdana, arial, sans-serif;}
th { background: #2b1083; padding: 10px 5px;color: white;font-weight: bold;text-align: center;border-left: 1px solid #a6a6c9;}th.first { border-left: 0; padding: 5px 2px;text-align: left;}
tr {background: #fff;}
tr.alt {background: #f6f5f9; }
td { padding: 5px 2px;text-align: center;border-left: 1px solid #a6a6c9;color: #000;vertical-align: center;}td.alt { background-color: #f6f5f9; }td.bold { font-weight: bold; }td.first { border-left: 0; text-align: left;}
Standard Life Smaller Cos top ten holdings
Asos | 4.6 |
Abcam | 4.4 |
Hargreaves Lansdown | 3.2 |
Dominos Pizza | 3.1 |
Aveva Group | 3.0 |
Homeserve | 3.0 |
Paddy Power | 2.8 |
Spirax-Sarco Engineering | 2.4 |
Rotork | 2.4 |
New Britain Palm Oil | 2.4 |
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency
-
Is Donald Trump putting the US dollar in danger?
Donald Trump's administration sees one of its greatest advantages – the US dollar – as a burden. Gold is the obvious beneficiary, says Cris Sholto Heaton.