The Onward Opportunities investment trust has raised an additional £22mn from investors since it launched in 2023.
The largest shareholders of the investment trust are wealth management firms including Callanish Capital, Rathbones and GPIM.
Lawrence Hulse, manager of the Onward Opportunities investment trust, said a focus has been on the “regional desks” of wealth management firms, as he feels these have a greater capacity to make investment decisions, rather than being tied to a central buy list.
Hulse said the investment trust has a target to deliver a return of 15 per cent a year, and he said this has been achieved in the period since the launch.
He said the trust, which invests in smaller UK-listed companies, will not grow much bigger than £250mn in size.
He said: “We wouldn’t invest in a company at below the £10mn market cap level, because if they are that small, you have to wonder why.
“In terms of our own trust, we are very conscious that smaller companies funds often struggle when they grow too large as they are then unable to invest in the same way, and in the same companies.”
One of the wealth managers invested is Haig Bathgate of Callanish Capital.
He told FT Adviser: “We’re generally trying to differentiate ourselves by backing boutique managers for active management as we’re not constrained like some of the biggest investment houses are with minimum fund sizes etc.
“With the Onward Opportunities vehicle we like that it’s closed ended which evidently allows patient, long-term investing without redemption pressures.
“We also like an element of UK smaller companies exposure where we think there are mispricing opportunities.
“This is also an experienced team with strong record and alignment via significant personal investment.”
In addition to Hulse, the trust has an “investment committee” made up of individuals within Dowgate, the business that runs the trust, and external individuals.
The members of the investment committee have a collective £3mn invested in the fund.
david.thorpe@ft.com
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