Sanford DeLand announces IPO

UK Buffettology Smaller Companies Investment Trust Plc 

Sanford DeLand Asset Management Limited (SDL), home of the UK Buffettology and Free Spirit Funds, has announced an initial public offering (IPO) for subscription for shares in the Buffettology Smaller Companies Investment Trust PLC (‘the Trust’). SDL will provide investment services to the Trust led by Chief Investment Officer, Keith Ashworth-Lord. Shares in the Trust will be traded on the Main Market of the London Stock Exchange. The Trust is seeking to raise a minimum of £100 million.

The Trust will invest in a portfolio of between 30 to 50 (max. 60) smaller companies, all listed on the LSE or quoted on AIM, with a market capitalisation in the region of £20m to £500m at initial investment. Adopting a long-term investment horizon of at least five to ten years, the Trust will be benchmarked against the Numis Smaller Companies plus AIM (Ex-Investment Trust) Index.

SDL will manage the Trust according to the philosophy of Business Perspective Investing – widely acknowledged as one of the most successful long-term investment strategies, associated in particular with Warren Buffett and other disciples of Benjamin Graham. The UK Buffettology and Free Spirit Funds are managed according to this same process, which focuses on investing in excellent businesses bought at a fair price. Both existing open-ended funds are currently ranked in the top ten of the IA UK All Companies sector over three years, being the longest period over which both have existed.

Alex Brotherston, CEO of SDL commented; “We are delighted to be increasing the options for investors to access SDL investment expertise with the launch of the UK Buffettology Smaller Companies Investment Trust. We seesmaller companies as offering a particularly attractive investment universe as they tend to be less well researched by traditional broking houses and therefore less well understood by the investment community.

“The SDL investment team collectively has many decades of experience of applying the principles of Business Perspective Investing. The team will build on experience gained from running the UK Buffettology and Free Spirit Funds, combined with embedded knowledge in the smaller quoted company market, which will provide the necessary insight and expertise to take advantage of this opportunity for the Trust’s shareholders.”

Keith Ashworth-Lord, CIO of SDL added; “We believe that the UK small cap market will continue to offer excellent investment opportunities to experienced managers who know what to look for and have the freedom to take a long-term view. Our Business Perspective Investing approach in combination with a permanent capital structure presents an opportunity to deliver superior returns for our shareholders, over the long-term.

“The structure of a closed-ended investment trust, rather than an open-ended fund, means that many of the liquidity concerns over investment in smaller quoted companies can be addressed. The investment trust structure (and permanency of capital) should ensure that we can take a genuinely long-term investment perspective, thus reducing liquidity risk to the portfolio.”

Public Offer Terms

Name: Buffettology Smaller Companies Investment Trust Plc
Listing: Premium listed, trading on the LSE
Issue price: 100p
Target issue size: £100m plus
Benchmark: Numis Smaller Companies plus AIM (ex-Investment Trusts)
AMC: 0.65%

-ENDS-

NOTES TO EDITORS:

Sanford DeLand Asset Management Limited

Sanford DeLand Asset Management Limited (SDL) was established in March 2010 and its investment team manages the UK Buffettology Fund and Free Spirit Fund. Unlike many asset management firms, much of the share capital of SDL is owned by the directors of the business.

Alex Brotherston, Chief Executive Officer, Sanford DeLand

Alex has been working in the UK financial services industry for more than 35 years. He previously spent 15 years at Rensburg Fund Management, latterly as joint CEO. When the firm was acquired by Franklin Templeton in 2011 Alex took over as Director of the UK Retail Sales team.

Keith Ashworth-Lord, Chief Investment Officer, Sanford DeLand

Keith is Founder and CIO of SDL and Fund Manager of the SDL UK Buffettology Fund. Keith is a career professional with over 35 years’ equity capital markets experience in investment analysis, fund management and corporate finance.

SDL is an Appointed Representative of Castlefield Investment Partners LLP (CIP), which is authorised and regulated by the Financial Conduct Authority.

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