Incorporated in 1993, Brown Advisory US Smaller Companies Plc, which was known as Jupiter US Smaller Companies PLC before, is a UK-based investment company that primarily invests in a diversified portfolio of quoted US smaller and medium-sized companies to deliver long-term capital growth. The company invests across a range of sectors that includes consumer discretionary, consumer staple, energy, financial services, Health care, materials & processing, producer durables, technology, and utilities. The company compares its performance by its benchmark; the sterling adjusted Russell 2000 Total Return Index. Its shares are traded on the London Stock Exchange as LON: BASC.
The company has no employees and it has appointed Jupiter Asset Management Limited (JAM) as its Adviser and secretary and Jupiter Unit Trust Managers Limited as its Alternative Investment Fund Manager (AIFM). The board believes that investing in smaller companies sector is highly risky. However, the sector is highly diversified. So, the board focuses on companies with a strong franchise, durable growth, free cash flow, scalable go-to-market strategies, insider ownership by management and whose shares are considered by the Investment Adviser to be cheap at the time of investment, which can continue to provide opportunities for capital growth in long run.
To diversify its portfolio and enhance return, the company can’t invest more than 10% of its total assets in other listed investment companies and trusts, except in such investment companies, which themselves have stated that they can invest maximum 15% of their total assets in other quoted investment companies, in which case the limit is 15%. The portfolio will consist of minimum 40 securities and no single holdings should constitute over 5% of its total assets at the time of investments. No derivative instrument, excluding warrants may be held without the prior approval of the board. The company may use borrowings including overdraft facilities, but not more than 20% of its total assets and it shall require prior board approval. Further, the company can’t take legal or management control over any investments in its portfolio.
Brown Advisory US Smaller Companies PLC 6th Floor Bastion House, 140 London Wall, London, EC2Y 5DN, United Kingdom
+44 20 3301 8130