What I Bought Last
UK Smaller Companies fund in September 2016 . Burrell entered the industry in 2011 on the Smith & Williamson graduate scheme , where he covered UK multicap equities , before joining Royal London in 2017 . His investment approach is well aligned with Lowson ’ s , with a focus on generating returns with an appropriate level of risk . We hold Lowson in high regard and believe he is a passionate , considered and highly experienced smaller companies investor , with the potential to deliver attractive returns over the long term . Burrell is also driven and has worked closely with Lowson since joining the team . It is important to keep an eye on liquidity , especially when it comes to smaller companies , which can have problems in this area . The managers ’ conservative approach to this consideration supports our internal analysis .
Getting better Following a detailed review of the sector and several meetings with the managers , our conviction in the fund has grown . Lowson has built a good track record , supported by his stockpicking ability . We feel the managers ’ interests are aligned with those of investors , based on their incentivisation and the fact they have both committed significant amounts of their own money to the fund . Royal London UK Smaller Companies could add diversification to the UK portion of a more adventurous portfolio , or one focused on larger , more established businesses . Its growth focus could also complement other investments in out-of-favour value companies .
Kate Marshall is lead investment analyst at Hargreaves Lansdown
Issue 85 - June 2022 / 67 /