Downing Strategic Micro-Cap Investment Trust plc
Hunting value, enabling transformation.
Downing Strategic Micro-Cap Investment Trust plc (DSM) is a UK investment company listed on the London Stock Exchange, focused on unlocking value from a concentrated portfolio of between 12 – 18 companies under £150m market capitalisation at initial investment.
DSM finds and invests in small companies that are overlooked and undervalued by the market. DSM works with management to help transform those companies, and aims to unlock and realise considerable intrinsic value.
Downing Strategic Micro-Cap managed wind-down - Information for shareholders
28 August 2024
On 28 February 2024, shareholders in the Downing Strategic Micro-Cap Investment Trust (DSM) approved the managed wind-down of the Company. Since then, four special interim dividends have been announced following the Board’s stated intention of returning cash to shareholders in the most efficient way possible.
As announced on 18 June, the DSM Board received a request to requisition a general meeting of the Company from Vidacos Nominees Limited, acting as nominee of Milkwood Capital Limited. The requisitioned general meeting of the Company was held on 5 August 2024, and all requisitioned resolutions were voted on by way of a poll. None of the requisitioned resolutions were carried. The results of the poll and all of the requisitioned resolutions can be found here Result of Meeting - 12:31:26 05 Aug 2024 - DSM News article | London Stock Exchange
Mr Aldous and Mr Legget remain on the Board, which will continue to liaise with the Investment Manager in order to return capital to shareholders as efficiently as possible in accordance with the Company's managed wind-down.
Hugh Aldous, Chair of Downing Strategic Micro-Cap Investment Trust plc, said: "We have always maintained that the actions of Milkwood in bringing these resolutions and forcing us to hold a wholly unnecessary General Meeting were entirely self-serving and against shareholders' best interests. We are pleased that shareholders have listened to our advice and have voted against Milkwood's resolutions and acted to protect their interests. Thank you. We will now proceed expeditiously to complete the task our shareholders have set us: namely to liquidate the assets in the fund and return the resulting proceeds to shareholders to dispose of as they see fit."
The first special dividend of 30p per share was paid on 26 April, a second of 12p per share was paid on 21 June, with the third of 17.5p per share, paid to shareholders on 18 July. The Board intends to pay out the fourth special interim dividend of 2.2p per share on 23 August 2024. This will result in aggregate distributions of 61.7p per share having been paid out during the managed wind-down (amounting to approximately 93.53% of the Company's NAV as at 28 February 2024 (the date at which shareholders approved the managed wind-down) through special dividends. Following the payment of the fourth special interim dividend, the Board intends to take steps to put DSM into liquidation.
The Company now has assets of £3.63m. The current Net Asset Value per share (at 27 August 2024) is 7.95p.
The Board of Directors of DSM announced the results of the Annual General Meeting of the Company held on 21 August. Further information on these resolutions can be found here https://www.londonstockexchange.com/news-article/DSM/result-of-agm/16629613
For the company's daily NAV updates, please visit London Stock Exchange
Fees
Ongoing charges:
Risks
Past performance should not be used as a guide to future performance. The value of shares can go down as well as up - there is no guarantee that you will get back the amount you originally invested.
Please note that this is only a brief overview of the risks associated with investing in the Downing Strategic Micro-Cap Investment Trust. The full details of all the risks can be found here.
How to invest
DSM’s shares are traded on the London Stock Exchange and can be purchased through a stockbroker or other financial intermediary.
You can invest in DSM via a number of fund platforms, please see the options below.
Please note that by clicking on a link, you will be taken to a website operated by a third party. Downing does not sponsor, maintain or have any control over the content of any other website. If you access another site, you do so at your own risk and we accept no liability for any damage or loss.
Management team
DSM is managed by Judith MacKenzie and Nick Hawthorn of Downing Fund Managers, a boutique investment house founded in 2010. Judith and Nick employ a value-based style that favours a private equity approach to investing in public markets.
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