The fund giving investors pure access to UK micro-caps

Fund capped at £30m to ensure micro-cap exposure

The micro-cap sector has been a popular choice for new products in the past year, with notable launches in the investment trust space in particular. But are these funds giving investors pure access to micro-caps?

Judith MacKenzie (pictured), manager of the PFS Downing UK Micro-Cap Growth fund, argues not, as "simple maths" dictates bigger funds will either have "fewer holdings in larger companies, or a raft of holdings in smaller companies, and both strategies have pitfalls". Her £20m fund only ever backs companies under £150m market cap, and many of the stocks are under £75m. As a result of the manager's strict investment criteria, the fund will be capped at £30m to protect performance and ensure investors are receiving true micro-cap exposure. Ex-New Star CIO Whittaker joins forces with Down...