Buffettology Smaller Companies Investment Trust PLC
Intention to Float on London Stock Exchange
Buffettology Smaller Companies Investment Trust PLC (“Buffettology” or the “Company”) today announces its intention to launch an initial public offering (“IPO”) and to admit its shares on the premium segment of the Official List of the Financial Conduct Authority and to trading on the Main Market of the London Stock Exchange plc. Buffettology is seeking to raise a minimum of £100 million via an initial placing, an offer for subscription and an intermediaries offer (together the “InitialIssue”) of redeemable ordinary shares of £0.01 each in the capital of the Company (“Ordinary Shares”). A twelve month placing programme will also be launched pursuant to a prospectus (“Prospectus”).
Sanford DeLand (“Sanford DeLand”) will be the Investment Manager to the Company, led by Keith Ashworth-Lord (CIO of Sanford Deland Asset Management Limited). Sanford DeLand manages approximately £1.4 billion across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit® Fund. Since inception, the Sanford DeLand team have won several industry accolades for its CFP SDL UK Buffettology Fund including Best Smaller UK Growth Fund in the 2015, 2016 and 2017 Money Observer Fund Awards and Best Larger UK Equity Growth Fund in the 2018 and 2019 Money Observer Fund Awards as well as Best Alpha Generation UK Equity at the 2018 RSMR Awards for achieving consistent superior results on behalf of investors1. Sanford Deland Asset Management Limited (“SDL Limited”) has an association with Mary Buffett and David Clark, authors of the seminal 'Buffettology' series of investment books regarding Warren Buffett's investment style.
Investments will be made by applying the methodology of “Business Perspective Investing”, which starts with the premise that there is no philosophical distinction between part ownership (i.e. buying shares in a company) and outright ownership (i.e. buying the business in its entirety). In combination, the Company will seek to invest in the securities of companies where such securities can be acquired at a fair price in relation to the estimated intrinsic worth of the business.
The Company is seeking to provide shareholders with an annual compounding rate of return over the long term, defined as 5-10 years, which is superior to the Numis Smaller Companies plus AIM (Ex Investment Trust) Index. The Company will predominantly invest in the securities of companies listed or traded in the United Kingdom with a portfolio consisting of 30-50 companies with market capitalisations at the time of investing ranging from £20m-£500m.