THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT MAY CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE UK'S MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Invesco Perpetual UK Smaller Companies Trust plc

Change of Investment Management Arrangements

• Invesco Perpetual UK Smaller Companies Trust plc to appoint Artemis Fund Managers Limited as investment manager
• No change to investment objective, investment policy or dividend policy
• Shareholders to benefit from a reduction in management fees as well as an initial nine month fee waiver
• Company to be renamed in due course to reflect the change in management and to leverage Artemis’ strong brand in UK equities

Introduction

The Board of Invesco Perpetual UK Smaller Companies Trust plc (the “Company”) is pleased to announce that, following a review of the Company's investment management arrangements, it has entered into a conditional agreement to appoint Artemis Fund Managers Limited (“Artemis”) as the Company's investment manager.

The Company's core investment objective and policy, being to achieve long-term total return for shareholders primarily by investment in a broad cross-section of small to medium sized UK quoted companies, will not change.

The Company's portfolio will be managed by Mark Niznik and Will Tamworth. They have worked as co-managers at Artemis since 2015 and each brings considerable prior expertise in the UK small-cap equity space.

The fund managers will seek to capture the small cap performance premium (3% annualised since 1955), by employing a research-driven, stock picking process to select portfolio companies from the ~1,000 companies that make up the smallest 10% of the UK market by market capitalisation. The fund managers look for good businesses, with attractive financials and seek to acquire them at reasonable valuations. The portfolio will typically contain between 50 and 70 stocks, constructed without reference to the benchmark, though remaining economically diversified.

The Board believes that the change in investment manager will provide the following benefits to shareholders

• Top quartile track record: The Artemis team have a strong investment track record. The open-ended Artemis UK Smaller Companies Fund is ranked top quartile over 3, 5 and 10 years relative to the IA UK Smaller Companies peer group (to 29 November 2024). Since taking over management of the Artemis UK Smaller Companies Fund in 2011 the team has returned 259% compared to 185%% for the Deutsche Numis Smaller Companies (ex IT) Index and 181% for the IA UK Smaller Companies sector
• Reduction in fees: Artemis will charge a management fee of 0.65% of net assets up to £50 million and 0.55% thereafter (compared to the fee of 0.75% of gross assets currently paid by the Company)
• Waiver of management fees: Artemis will waive the first nine months of management fees post appointment
• Alignment: The fund managers, alongside other individuals at Artemis, have committed to invest a significant amount into the Company
• Marketing: Artemis’s distribution capability will assist in finding new demand for the Company’s shares

Information on the Artemis group

Artemis is an independent and owner-managed fund manager, offering a range of funds which invest in the UK, Europe, the US and around the world. As a dedicated, active investment house, it specialises in investment management for both retail and institutional investors. The firm was launched in 1997. The main operating entity, Artemis Investment Management LLP, is a Limited Liability Partnership and currently has 25 partners, who are fund managers and other key individuals at the firm. www.artemisfunds.com

Details on the appointment of Artemis

Artemis will receive an annual management fee of 0.65% of the net assets of the Company up to £50 million and 0.55% thereafter.

As a contribution to the costs of the change of investment manager, Artemis will waive the management fee payable to it for a period of nine months from its appointment as investment manager, as well as making a significant contribution to the Company’s marketing budget.

The investment management agreement shall be terminable by either party serving six months' notice.

Expected timing

The Company has provided notice to terminate the appointment of Invesco Fund Managers Limited as the Company's AIFM, company secretary and administrator. Subject to regulatory approval and finalising transitional arrangements, Artemis’s appointment as investment manager and AIFM is expected to become effective in Q1 2025. A further announcement will be made in due course.

Bridget Guerin, Chairman, commented:

““Having reviewed a variety of options, Artemis stood out as not only top performers but also very enthusiastic about taking over the management of IPU. To reinforce their commitment to managing the Company, both fund managers and other staff members within Artemis have agreed to invest meaningful amounts of money into the fund. The Board and Managers are excited about the prospects for UK small companies which are now trading at historically cheap levels.””

Mark Murray, Senior Partner, Artemis, commented:

“We are delighted that the Board has appointed Artemis to manage the Company.  Mark and Will have an outstanding investment proposition.  Combined with Artemis’ strong brand and marketing expertise, we believe we have a compelling proposition to deliver success for the Company and its shareholders.”

For further information please contact

LEI: 549300K1D1P23R8U4U50

Past performance cannot be relied on as a guide to future performance.  Performance data is sourced from Deutsche Numis, Artemis, Lipper Limited, class I accumulation units in GBP. Data is total returns with dividends and/or income reinvested, net of all charges. Performance does not take account of any costs incurred when investors buy or sell the fund.