TM Oberon UK

Smaller Companies Fund

The TM OBERON UK Smaller Companies Fund aims to achieve long-term growth, over a rolling period of at least 5 years, through a combination of capital gains and income generation, with all fees and expenses accounted for.

Investment Strategy

The Fund follows a bottom-up investment approach, focusing on small-cap and AIM-listed UK companies. This approach is built on four core principles:

1. Three Pillars of Growth: Focusing on companies with the potential for multi-faceted growth.

2. Value-Driven Philosophy: Seeking fundamentally strong companies that are undervalued by the market.

3. Manager Alignment: The fund manager is co-invested, aligning their interests with those of the investors.

4. Focus on Distressed Growth Sectors: Targeting industries with long-term growth potential that may be temporarily out of favour.

These principles are designed to deliver alpha by identifying unique opportunities within the small-cap market segment that align with the Fund’s strategy and growth focus.

Meet the Manager

Richard Penny

Richard joined Oberon as a fund manager in December 2024, bringing experience from CRUX Asset Management, where he managed the TM CRUX UK Special Situations Fund since October 2018. He previously worked at LGIM for 15 years, managing the L&G UK Alpha Trust and L&G UK Special Situations Trust, and held roles at M&G Investment Management and Scottish Amicable Investment Management. In June 2021, Richard received an AAA rating from Citywire. He holds a master’s degree in Engineering and Economics from Oxford University.

Fund Objectives and Investment Policy

The Fund’s primary objective is to generate long-term capital growth, targeting a period of at least 5 years.

To achieve this, the Fund invests at least 75% of its assets in shares of smaller UK companies, which are either domiciled, incorporated, or significantly exposed to the UK market. Within this allocation, the Fund focuses on the lowest 10% of UK-listed companies by market capitalization, reviewed on a quarterly basis.

The Fund seeks companies that demonstrate improving growth in revenues or profits and appear undervalued. This may include businesses undergoing strategic changes, such as new financing, acquisitions, or restructuring, as well as those experiencing management changes or shifts in business strategy.

Additionally, the Fund may invest up to 25% of its assets in:

Companies with market capitalisations above the bottom 10% of UK-listed firms,
Companies in other geographic markets, such as Europe and the USA,
Collective investment vehicles, including those managed by the ACD or Investment Manager,
Warrants, cash, and cash-equivalents.

This flexible approach allows the Fund to capture a diverse range of opportunities across small and micro-cap companies, with the potential for growth-driven returns.

TM Oberon Funds ICVC – Prospectus - 20241213

The TM Oberon UK Smaller Companies Fund was previously managed by CRUX Asset Management (which was acquired by Lansdowne Partners). Should you require Factsheets prior to December 2024 please reach out to Lansdowne Partners using the following email address: info@lansdownepartners.com

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