Executive summary
- The FTF Martin Currie UK Smaller Companies Fund was repositioned 10 years ago in alignment to the successful philosophy adopted by the existing UK mid cap fund.
- Since then, UK smaller companies have outperformed all other listed UK equity asset classes. Amongst the UK smaller companies peer group, the FTF Martin Currie UK Smaller Companies Fund has generated top quartile returns.
- Owning quality businesses and compounding over the long term remains an enduring and evident theme within the fund.
- 75% of today’s portfolio is aligned to one of four strategic investment themes where powerful, structural tailwinds are at play.
- Despite a challenging outlook for the UK, valuations look compelling. We believe that the resilience inherent within ‘quality’ companies will enable the portfolio to emerge in a stronger competitive position once the turbulence dissipates.
- The FTF Martin Currie UK Smaller Companies Fund aims to grow in value by more than the Numis Smaller Companies ex- Investment Trusts Index over a three to five-year period after all fees and costs are deducted.
We will continue to focus on the long term and allow the fund to benefit from the compound returns gained from holding exceptional businesses. Here’s to the next ten years!
Risk warnings – Investors should also be aware of the following risk factors which may be applicable to the strategy shown in this document.
Concentration Risk: The risk that arises when a fund invests in relatively few holdings, few sectors or a restricted geographic area. Performance may be more volatile than a fund with a greater number of securities.
Equity Risk: Prices of equities may be affected by factors such as economic, political, market, and issuer-specific changes. Such changes may adversely affect the value of the equities regardless of company-specific performance.
Investment in smaller company shares: The fund buys shares in smaller companies. It may be difficult to sell these shares, in which case the fund may not be able to minimise a loss on such shares.
Liquidity Risk: The risk that arises when adverse market conditions affect the ability to sell assets when necessary. Such risk may be triggered by (but not limited to) unexpected events such as environmental disasters or pandemics. Reduced liquidity may have a negative impact on the price of the assets. For a full discussion of all the risks applicable to this Fund, please refer to the “Risk Factors” section of the current prospectus of Franklin Templeton Funds.
Regulatory information and risk warnings
This information is issued and approved by Martin Currie Investment Management Limited (‘MCIM’), authorised and regulated by the Financial Conduct Authority. It does not constitute investment advice. Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested. The information contained in this document has been compiled with considerable care to ensure its accuracy. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Martin Currie has procured any research or analysis contained in this document for its own use. It is provided to you only incidentally and any opinions expressed are subject to change without notice. This document may not be distributed to third parties. It is confidential and intended only for the recipient. The recipient may not photocopy, transmit or otherwise share this [document], or any part of it, with any other person without the express written permission of Martin Currie Investment Management Limited. The document does not form the basis of, nor should it be relied upon in connection with, any subsequent contract or agreement. It does not constitute, and may not be used for the purpose of, an offer or invitation to subscribe for or otherwise acquire shares in any of the products mentioned.
Past performance is not a guide to future returns.
The views expressed are opinions of the portfolio managers as of the date of this document and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice. Please note the information within this report has been produced internally using unaudited data and has not been independently verified. Whilst every effort has been made to ensure its accuracy, no guarantee can be given.
The information provided should not be considered a recommendation to purchase or sell any particular strategy/fund/security. It should not be assumed that any of the securities discussed here were or will prove to be profitable.
Smaller companies may be riskier and their shares may be less liquid than larger companies, meaning that their share price may be more volatile. Martin Currie Investment Management Limited , registered in Scotland (no SC066107), Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ES. Authorised and regulated by the Financial Conduct Authority. Tel: 44 (0) 131 229 5252 Fax: 44 (0) 131 228 5959 www.martincurrie.com. Please note that calls to the above number and any other communications may be recorded.© 2022 Martin Currie Investment Management Limited
FTF Martin Currie UK Smaller Companies Fund is a sub-fund of Franklin Templeton Funds (“FTF”), a UK-domiciled OEIC ("the Fund"). Subscriptions to shares of the Fund can only be made on the basis of the current prospectus, the relevant Key Investor Information Document ("KIID"), accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter, which can be found at www.franklintempleton.co.uk. There is no guarantee that the Fund will achieve its objective. For a free copy of the latest prospectus, the relevant KIID, the annual report and semi-annual report, if published thereafter or for more information about any Franklin Templeton fund, UK investors should contact: Franklin Templeton, Telephone: 0800 313 4049, Email: ftisalessupport@franklintempleton.co.uk.