Interactive Investor

ii Super 60 investments:TB Amati UK Smaller Companies

Asset GroupAsset Sub-GroupInvestment Category
EquitiesUK smaller companiesSmaller company

Paul Jourdan has managed the strategy since September 2000, initially at First State, then at Noble Group, before establishing Amati in 2010. He is supported by David Stevenson who joined Amati as a co-portfolio manager in 2012 and by three other co-managers/analysts who joined the team over the past four years. In addition to this strategy, the team manages an AIM VCT, which provides a potential source of added value for this smaller companies strategy.

The attributes generally sought in a company include a clear competitive advantage, sustainable growth and ability to finance that growth, and high returns on cash invested. The managers generally avoid companies in markets dominated by larger rivals and those with aggressive accounting practices and/or significant liabilities. Longer-term sustainable growth ideas are the primary focus, but they also invest in cyclical stocks while seeking to maintain an emphasis on quality. The primary focus is on the fundamentals of the business rather than notional valuations as signals for buying or selling.

As well as some of the smaller AIM-listed companies, the managers also invest at the other end of the spectrum up into the FTSE 250 Index. Overall, however, this results in a smaller market-cap profile than the UK small-cap equity Morningstar Category average, with a larger allocation to micro-caps. Versus its Numis Smaller Companies plus AIM ex IT benchmark the fund has a slightly larger market-cap profile and a growthier style bias, with higher quality metrics. These biases will impact relative returns at times.

Opinion
Overall, Jourdan’s lengthy tenure provides stability and continuity for investors’ and he is well-supported. The key differentiator and potential source of added value of this process over small-cap peers is the focus on the smaller end of the AIM market.

November 2022

Amati UK Small Cap fund: Brexit, elections, liquidity & AIM

Fund manager Paul Jourdan explains why his ii Super 60 small-cap fund has outperformed, whether it can continue, and how Brexit might affect his approach. Paul also reveals how also running an AIM VCT has been a great help and what he thinks about liquidity and the regulator’s approach to open-ended funds investing in unquoted assets.

Amati UK Small Cap fund: Brexit, elections, liquidity & AIM

Amati UK Small Cap fund: Wall of money, bank stocks, growth vs value

Find out what ii Super 60 fund manager Paul Jourdan thinks of the growth versus value argument, why over 9% of his portfolio is currently in cash, and whether a ‘wall of money’ will deliver a massive boost to stocks once Brexit is resolved. Lee Wild, interactive investor’s head of equity strategy, also asks Paul about the banking sector, best stock ideas and where private investors should put their money now.

Amati UK Small Cap fund: Wall of money, bank stocks, growth vs value

Risk warnings

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab. 

The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor. 

Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.