In recent years, outflows and poor performance have contributed to the assets managed by Amati Global Investors shrinking significantly to around £414m as of the end of March 2025.
The UK Listed Smaller Companies fund, which launched in 1998, is the largest fund run by Amati by a considerable margin, and so its success is important to the business. The UK Listed Smaller Companies fund had assets of £201m as of the end of March 2025, having seen estimated outflows of £183m over the last 12 months. The fund has a strong long-term track record but for the last four years has underperformed peers.
Amati has launched two additional funds in recent years but these have not yet achieved scale.
Our view
As a business predominantly focused on investing in UK smaller companies, Amati has not been alone in seeing outflows as investors have favoured investing in other regions like the US in recent years. Pessimism from investors on the prospects for the UK economy has meant that the UK Smaller Companies sector has seen significant outflows. Generally, smaller companies derive a greater share of their revenues domestically compared to larger companies and are more sensitive to higher interest rates. So this area of the market has faced a number of headwinds. Smaller companies are typically higher risk compared to their larger counterparts.
Coinciding with this and despite an attractive long-term track record, the UK Listed Smaller Companies fund has experienced a sustained difficult period of performance, lagging behind the IA Smaller Companies sector average in each of the last four years.
There has been a sustained and significant fall in the level of assets managed by the business, resulting in a decline in profitability and costs increasing as a proportion of assets under management. As a result, because of these outflows and poor performance we feel it’s right to remove the fund from the Wealth Shortlist.
Although we're removing the fund from the Wealth Shortlist, this isn't a recommendation to make any changes to an investment portfolio. Investors should make sure any investments match their investment goals and attitude to risk and are held as part of a diversified portfolio. If you're not sure if an investment is suitable for your circumstances, please seek personal advice.
We've also recently produced a full fund update on this fund.
Annual percentage growth
Mar 20 – Mar 21 | Mar 21 – Mar 22 | Mar 22 – Mar 23 | Mar 23 – Mar 24 | Mar 24 – Mar 25 | |
|---|---|---|---|---|---|
Amati UK Listed Smaller Companies | 72.70% | -8.17% | -21.90% | -1.08% | -5.18% |
IA UK Smaller Companies | 67.22% | -2.13% | -17.04% | 4.75% | -2.89% |