News » Raynar Launches UK Smaller Companies UCITS Fund
Raynar Launches UK Small Cap UCITS
June 2024, London:
Raynar Portfolio Management (Raynar) launches the WS Raynar UK Smaller Companies Fund – a new UK UCITS offering access to portfolio manager Philip Rodrigs’ core UK smaller companies strategy.
The launch coincides with Rodrigs’ conviction that we are in the early stages of the next bull market for UK smaller companies.
“With the UK economy strengthening faster than expected following its ‘soft landing’ last year, now is the ideal time to launch a UK UCITS fund targeting highly attractive UK firms,” Rodrigs explains.
“Multiple catalysts are aligning – inflation has fallen significantly, there will soon be a refreshed political mandate and the large number of companies buying back stock or being targeted for take-over suggests valuations are uncommonly attractive. Most importantly, I am anticipating the Bank of England will cut interest rates this summer, which historically has been strongly associated with subsequent strong gains for UK smaller companies, well ahead of larger peers.*
“Having observed that conditions in autumn 2023 were eerily similar to those that marked the sector’s nadir in late 2008, I am increasingly optimistic for the outlook for UK smaller companies.”
Raynar’s existing Flagship Strategy has delivered a total return of 40% since late October**, significantly ahead of all IA UK Smaller Companies sector peers. This magnitude of return is similar to that achieved by Philip’s UK smaller companies UCITS strategy from the end of 2008, which went on to achieve a +670% total return over nine years, compared to a sector market total return of +338%. This formed part of Philip’s award-winning, sector-leading risk-adjusted return track record between mid-2006 to end-2017***, produced with UCITS strategies managed in a similar way to that intended with Raynar’s imminent launch.
Notes to Editors:
RPM Holdings Limited (RPM) is an Appointed Representative (FRN: 972964) of Thornbridge Investment Management LLP (TIM) which is authorised and regulated by the Financial Conduct Authority (FRN: 713859). TIM is the investment manager to the fund and has appointed Philip Rodrigs to manage the portfolio alongside RPM, trading as Raynar Portfolio Management, as distributor.
*Since 1980, in the two years subsequent to the first Bank of England interest rate cut of a sustained cycle, of which there were seven, UK Smaller Companies (represented by the Deutsche Numis UK Smaller Companies index) delivered material absolute gains (bar 2007) which were considerably in excess of larger companies (represented by the Deutsche Numis UK All Share index), bar 1990, where it took 4 years to achieve the feat.
**Past Performance is not a reliable indicator of future performance. Strategy total return is calculated inclusive of cumulative dividends declared to date net of 1% per annum management fee and costs from 25th October 2023 (strategy low point coincident with) to end May 2024. Compared to Investec UK Smaller Companies fund from end 2008 which delivered a similar 43% over seven months.
***References Philip Rodrigs tenure as manager of Investec and R&M UK Smaller Companies UCITS Funds between 1st July 2006 to 17th Jan 2014 and 15th Sept 2014 to end Dec 2017 respectively, achieving an overall return of +424% compared to the DN UK Small Cap Index return of +148% (assuming zero returns during gap). Comparison to all peers during tenure shows Philip delivered the best Sharpe Ratio, indicating sector-leading risk adjusted returns.
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