The Investment Company has lagged the FTSE All Share Index over the past decade, producing returns of 81% versus the market’s 153%. Over the past 12 months it has fared even worse, recording 3% compared to 22% from the index.
Williams will be assisted by Miton colleague Martin Turner. Under their leadership the company’s aim will change so that it has a bias towards dividend-paying smaller companies.
It currently aims to generate returns ‘principally through investment in preference shares and prior charge securities’ and has a 33% stake in fixed income notes issued by Lloyds Bank.
The aims to apply for investment company status, and will issue a series of ordinary shares to raise an additional £5m.
Until now the £4.39m vehicle has been managed by Stephen Cockburn, managing director, who has been at the helm since 1994. He will move into a non-executive role, advising Miton on the legacy portfolio.
In safe hands
Williams has outperformed his peers over various time periods, as shown in the graph below.
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He currently manages the CF Miton UK Smaller Companies Fund and the UK Multi Cap Income Fund , along with the Miton Diverse Income Trust.
The UK Smaller Companies Fund was launched in December last year, while the UK Multi Cap Income Fund opened in October 2011. The latter is currently most heavily weighted in the telecoms sector, with around 18% of assets being committed here.
In addition to the investment trust managed by Williams, Miton runs the Midas Income and Growth Trust and the Miton Worldwide Growth Trust.
