Investments 

Miton launch US smaller companies fund

Miton launch US smaller companies fund

Miton will launch a fund to invest in US smaller companies.

It will be managed by Nick Ford and Hugh Grieves, who currently run the £412m Miton US Opportunities fund which has returned 51 per cent over the past three years, compared with 42 per cent for the average fund in the IA North America sector.

Mr Ford previously ran the Scottish Widows Investment Partnership (SWIP) American Smaller Companies fund.

He said: "We believe that investors will benefit from a smaller companies fund which is focused on significant growth opportunities.

"We consider the US to be one of the most active geographies for finding such entrepreneurial companies. It provides a business friendly environment which is open to new ideas and business models, while providing easy access to early stage capital."

Mr Grieves said the tax reform passed by the Trump administration at the end of last year, which included a big cut for corporations, would act as a windfall for companies and boost confidence, with small caps set to be the biggest beneficiaries.

The new fund will invest in a portfolio of between 70 and 100 companies that have a market cap of between $100m (£72.3m) and $6bn (£4.3bn).

Almost a quarter of the initial portfolio will be weighted in the financials sector, with almost another quarter invested in information technology companies.

Damian Barry, senior investment manager at 7IM said US smaller companies have tended to perform better than large caps over time. 7IM have recently added US smaller company funds to several of its portfolios.

Darius McDermott, managing director at Chelsea Financial Services said Mr Ford and Mr Grieves have been strong performers throughout their careers.

david.thorpe@ft.com