Miton UK MicroCap Trust plc (LON:MINI) has announced its Factsheet for the month ended 29 February 2024.
Manager commentary
During the globalisation decades, the capital appreciation of companies focussed on growth has greatly outpaced the return generated by companies paying good and growing dividends.
This has been especially apparent in micro-caps listed on the UK stock exchange. As capital has been withdrawn from the large UK companies, their valuations have fallen although this has been moderated by international buyers. Where capital is withdrawn from UK micro-caps however, they are of little interest to international investors and hence their valuations can fall very considerably.
Over recent years, the compromises that come with globalisation have become more apparent. Global electorates have started to vote for nationalistic policies, which sometimes lead to additional geopolitical risk (the potential political, economic, military, and social risks that can emerge from a nation’s involvement in international affairs). During crises, we believe cash generative companies have all the advantages.
