Invesco Perpetual UK Smaller Companies to Rebrand Under Artemis Management

Invesco Perpetual UK Smaller Companies fund will be renamed to Artemis UK Smaller Companies after Artemis Asset Management is appointed as the new manager. The name change reflects the new management team and is expected to take place on March 1.

The Invesco Perpetual UK Smaller Companies investment trust, with a market capitalization of £117 million, is set to undergo a significant transformation. Effective March 1, 2023, the fund will be rebranded as the Artemis UK Smaller Companies fund, reflecting its new management team, Artemis Asset Management [1].

Artemis Asset Management, a renowned player in the UK investment management industry, has been appointed as the new manager. The appointment follows a rigorous selection process, with the board of directors choosing Artemis based on the top-quartile performance of its open-ended Artemis UK Smaller Companies fund [2]. Over the past three years, this fund has been the second-best performer in its sector, and the fifth-best over the past ten years [2].

The new management team, comprising Mark Niznik and William Tamworth, will charge a lower management fee of 0.65% of net assets up to £50 million and 0.55% thereafter, a decrease from the current fee of 0.75% of gross assets [2]. Additionally, Artemis has agreed to waive the first nine months of management fees.

Niznik and Tamworth, along with other individuals at Artemis, have committed to investing a significant amount in the trust, ensuring a strong alignment of interests between the managers and the shareholders [2]. The board was also attracted by Artemis' marketing and distribution reach and its ability to assist in finding new demand for the company's shares [2].

The investment process employed by Niznik and Tamworth will remain research-driven, focusing on selecting 50 to 70 stocks with good businesses and attractive financials. They aim to buy these stocks at reasonable valuations, leveraging the benefits of a closed-ended structure [2].

Niznik, who previously managed the trust over 30 years ago, expressed his excitement about the opportunity to return and work with Tamworth. Tamworth, in turn, highlighted the potential of the smaller companies universe, which he believes is home to a wide range of market-leading businesses trading at attractive valuations for investors with a medium-to-long-term mindset [2].

Subject to regulatory approval, Niznik and Tamworth are expected to take over the portfolio in the first quarter of 2023.

References:
[1] Invesco Perpetual UK Smaller Companies Investment Trust plc. (n.d.). Retrieved December 14, 2022, from https://www.invesco.com/uk/en/investment-trusts/invesco-perpetual-uk-smaller-companies-investment-trust-plc.html
[2] Trustnet. (2022, November 30). Invesco Perpetual UK Smaller Companies changes manager to Artemis. Retrieved December 14, 2022, from https://www.trustnet.com/news/13433368/invesco-perpetual-uk-smaller-companies-changes-manager-to-artemis