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Unicorn Outstanding British Companies Class B - Accumulation (GBP)

Sell:365.91p Buy:365.91p Change: 2.87p (0.79%)
Prices as at 23 September 2021
Change: 2.87p (0.79%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 23 September 2021
Change: 2.87p (0.79%)
Prices as at 23 September 2021
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Chris Hutchinson is a proven, experienced investor with an investment process that's stood the test of time. He's got the backing of the broader Unicorn team, and of co-manager Max Ormiston. The fund is quite small in comparison to some of its peers which means the managers can pounce on new opportunities as soon as they become available.

They'll invest in companies of any size but the fund is focused towards small and medium-sized companies. The managers tend to invest in relatively few companies. Both of these factors add risk.

The fund also invests in companies listed on the Alternative Investment Market (AIM). In recent years, there have been suggestions that the government could cut some of the tax benefits that investors in these companies currently enjoy. Thus far, no such change has been introduced, but the share prices of some AIM-listed companies could suffer if investors' tax breaks are cut in the future. We're encouraged that the managers' investments in this area have made great returns for investors over the years and it's a market they know well. But investments in AIM-listed companies add risk.

Overall we think this fund could be a great addition to the UK section of a portfolio and expect it to do well over the long term. There are no guarantees though.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

The fund has performed much better than peers in the IA UK All Companies sector since launch in 2006. We put this down to the manager's ability to select companies with great prospects, regardless of their size or what industry they're in. Past performance isn't a guide to the future.

Their focus on higher-quality companies means we'd expect the fund to shelter investors' money when stock markets fall. But it's likely to underperform if markets rise rapidly.

Investment Philosophy

Chris Hutchinson and Max Ormiston look for companies doing something that's difficult to replicate with experienced senior management teams. They aim to hold on to shares in these companies for the long term.

Process and Portfolio Construction

The managers think outstanding companies demonstrate most of the following traits:

  • A strong brand or franchise
  • A predictable earnings stream
  • Barriers to entry from competition
  • The ability to increase prices without affecting demand for their products or services
  • A significant and growing presence in their market
  • The ability to grow profits over the long term
  • Strong, experienced management teams
  • Managers that own a significant proportion of the business themselves
  • Good corporate governance

The managers get to know each company and its management team well before investing. Companies will often transition from Unicorn's Venture Capital Trust (VCT) product, through its Smaller Companies fund and on to the Outstanding British Companies fund as they grow larger. This allows the managers to build long and strong relationships with the companies they invest in.

question mark Manager Track Record Based on HL Quantitative Research

  • Unicorn Outstanding British...
  • IA UK All Companies

Fund Track Record

23/09/16 to 23/09/17 23/09/17 to 23/09/18 23/09/18 to 23/09/19 23/09/19 to 23/09/20 23/09/20 to 23/09/21
Annual return 4.01% 13.43% -4.39% -10.49% 22.37%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Max Ormiston
Manager start date: 31 December 2019
Manager located in: London

Max is co-manager to the Unicorn Outstanding British Companies Fund and supports Director & Senior Fund Manager, Chris Hutchinson. Max has been a member of the Unicorn investment team since joining the firm in 2014. Prior to joining Unicorn, Max spent four years with Brewin Dolphin, where he worked as an Investment Manager. Max is a CFA Charterholder and graduated with a BSc in Agribusiness Management from Newcastle University.

manager photo
Manager Name: Chris Hutchinson
Manager start date: 8 December 2006
Manager located in: London

Chris is Senior Investment Manager at Unicorn and is the individual primarily responsible for selecting stocks for inclusion within the Unicorn AIM Inheritance Tax Portfolio Service. Chris has been lead manager of Unicorn AIM VCT, the largest AIM-focused VCT in the industry, since joining the firm in 2005. Chris is also lead manager of Unicorn Outstanding British Companies Fund and a senior member of Unicorn's Investment Committee. Chris has approximately 18 years' experience managing portfolios of UK smaller companies.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account