VCT guide

59 58 PROVIDERS IN FOCUS PROVIDERS IN FOCUS Providers in Focus About the provider Amati Global Investors is an award-winning specialist fund management business based in Edinburgh. It focuses on UK small and mid- sized companies, with a universe ranging from fully listed constituents of the FTSE Mid 250 and FTSE Small Cap indices, to stocks quoted on the Alternative Investment Market (AIM). The fund management team is made up of Dr Paul Jourdan, David Stevenson and Anna Macdonald (supported by analyst Dr Gareth Blades) and collectively they manage all Amati funds with a combined experience of over 65 years in smaller company investments. Our VCT Offer Amati AIM VCT Prospectus Offer 2019/20 & 2020/21 is seeking to raise up to £25 million with an over-allotment facility of £20 million. Key Elements/Benefits: • Investing into an established portfolio dominated by profitable growth companies • The weighted average market capitalisation of the qualifying portfolio is £360m and two holdings are in excess of £1 billion • Eight out of the top 10 holdings are dividend paying • No performance fees Case Study AB Dynamics was founded by Tony Best in 1982 and floated on AIM in 2013, supplying engineering and testing services to the automotive industry. The founder maintains a near 28% stake in the business. The shares have performed strongly and AB Dynamics is our largest single stock holding in the VCT. Our strong faith in the strategy and management of AB Dynamics is demonstrated by our purchase of further shares for our smaller companies fund and IHT portfolios. Automotive manufacturers have faced serious challenges over the last few years, such as the diesel emissions scandal, tighter regulations, autonomous driving development and the rise of electric vehicles. AB Dynamics’ success has come through its ability to help carmakers transition to the new demands of consumers and governments by allowing manufacturers to test technologies ever more accurately and efficiently. The stock continues to attract new investors owing to its: • good organic revenue growth and robust margin delivery; • excellent market positioning across broad client base (top25 global vehicle manufacturers, all seven Euro NCAP laboratories and numerous government test authorities); • strong balance sheet (net cash); • and potential to build through further acquisitions. www.amatiglobal.com 1 year Total Return 3 years Total Return 5 years Total Return Amati AIM VCT -7.8% 56.5% 70.3% Benchmark* -12.6% 28.9% 29.6% *Benchmark: Numis Alternative Markets Total Return Index CUMULATIVE PERFORMANCE TABLE SOURCE: AMATI GLOBAL INVESTORS AS AT 31 JULY 2019