Strategic Equity Capital : Factsheet Q3 2021

Strategic Equity Capital plc

Q3 Factsheet - 30 September 2021

Fund objective

Investment information2

Strategic Equity Capital plc (SEC or Trust) is a London-listed investment trust investing predominately in small cap UK equities. The Trust is not constrained by market indices and aims to maximise returns for investors over the medium term.

Investment strategy

The Investment Manager, Gresham House Asset Management Limited employs a strategy to invest predominantly in publicly quoted companies which can create value through strategic, operational and management change - applying private equity style techniques to public companies. The process is based on private equity disciplines including a team approach and an Investment Committee that includes experienced executives and practitioners of public and private market investing. We aim for significant engagement with investee company stakeholders in support of a clear equity value creation plan over the long term.

Long term cumulative rebased total performance

Source: Bloomberg, Juniper Partners as at 30 September 2021 , net of charges - FTSE Small Cap data rebased to SEC start NAV June 2009

Discrete performance

	Q3	2020	2019	2018	2017	2016	2015	2014
	2021
Share Price Total Return	-2.6	-4.7	25.9	-17.6	20.2	-9.0	14.2	32.7
NAV Total Return	-0.2	-0.9	23.0	-14.1	21.7	6.3	12.1	18.0
FTSE Small Cap Total Return	2.7	1.7	17.7	-13.8	15.6	12.5	13.0	-2.7

Source: Bloomberg & FE Analytics, as at 30 September 2021

Investment Manager:

Launch date:

Net assets:

Market capitalisation: Share price:

Net Asset Value (NAV) per share:

Shares in issue: Current holdings: Yield (historic): Ongoing charges:

Gearing:

Discount to NAV:

Performance fee:

Dividend:

Asset class:

Comparator index:

Trust codes:

Gresham House Asset Management Limited

July 2005

£221m

£192m

303.0p

349.5p

63,296,844

19

0.53%

1.02%3

At present, the policy is "no gearing"

13%

10% above rolling

3-year FTSE Small Cap ex IT Total Return

• 2% p.a., subject to high watermark

Annual (November)

UK Smaller

Companies

FTSE Small Cap ex IT Total Return

SEDOL: B0BDCB2 Ticker: SEC.LN

ISIN: GB00B0BDCB21

1. CAGR: Compound Annual Growth Rate
2. Bloomberg, as at 30 September 2021
3. Includes Manager's performance fee accrual

Capital at risk:

The value of investments may fall as well as rise and investors may not get back the original amount invested.

Past performance is not necessarily a guide to

future performance.

Portfolio investments in smaller companies typically involve a higher degree of risk.

Sector breakdown4	% of NAV
Healthcare	27.5%
Business services	19.8%
Software	12.2%
Media	10.2%
Financials	8.3%
Industrial	6.9%
Property	6.1%
Consumer	4.3%
Net Cash	4.7%

4. As at 30 September 2021

Investment philosophy

Top ten holdings4	% of NAV
Medica Group	10.9%
XPS Pensions Group	9.4%
Clinigen Group	9.4%
Tribal Group	7.5%
Wilmington	6.6%
LSL Property Services	6.1%
Brooks Macdonald Group	6.0%
Tyman	5.9%
Inspired	5.6%
Fintel	4.9%

Investment process

Before investing we undertake an extensive due diligence process, assessing market conditions, management and stakeholders. Our investments are underpinned by valuations, which we derive using private equity-based techniques, including a focus on cash flows, the potential value of the company to trade or financial buyers and the capital structure.

We typically aim to hold companies for the duration of our rolling three-year investment plans that include an entry and exit strategy and a clearly identified route to value creation.

During our investment holding periods, we engage constructively with portfolio companies. The primary objective of this engagement is to promote further value creation for all investors. However, we will vigorously defend the interests of our investors if we believe they risk being threatened. Our engagement is undertaken in private and involves discussions and submission of written commentary and proprietary analysis to portfolio company managers, their advisers and, where required, other shareholders.

The Trust will invest in up to 25 smaller companies in the FTSE Small Cap and AIM indices, with the majority of the portfolio by value typically invested in 10-15 holdings.

Ken Wotton

Fund Manager

Over 20 years' experience in Public Equity. Fund Manager for Gresham House UK Micro and Multi Cap funds. Previously at Livingbridge.

Adam Khanbhai

Fund Manager

Over 12 years' experience in Public Equity. Previously at GVQ Investment Management, OC&C Strategy Consultants. Qualified CFA Charterholder.

CONTACT

For further information regarding SEC plc, please visit the Company's website: www.strategicequitycapital.com

Gresham House Asset Management Limited [e-mail]

[phone]

Ken Wotton, Fund Manager	Adam Khanbhai, Fund Manager
[e-mail]	[e-mail]

Secretary

Juniper Partners

28 Walker Street, Edinburgh, EH3 7HR

Tel [phone]

Important information

This factsheet is distributed by Gresham House Asset Management Limited which is authorised and regulated by the Financial Conduct Authority (FCA) as investment manager for Strategic Equity Capital plc. Its registered office is at 5 New Street Square, London EC4A 3TW. All information in this factsheet has been provided to you for information only. Whilst the information in this factsheet has been published in good faith no representation or warranty express or implied, is made by Gresham House or by any other person as to its accuracy or completeness and it should not be relied on as such. Gresham House and its affiliates assume no liability or responsibility and owe no duty of care for any consequences of any person acting in reliance on the information contained in this report or for any decision based on it. Gresham House does not undertake to provide the recipient with access to any additional information or to update this factsheet or to correct any inaccuracies therein which may become apparent. This factsheet should not be construed as, investment advice, an investment recommendation or investment research nor as containing any tax, legal or other advice. Investors are reminded that past performance is not indicative of future results. The value of investments may fall as well as rise and investors may not get back the amount invested. Funds investing in smaller companies may carry a higher degree of risk than funds investing in larger companies. The shares of smaller companies may be less liquid than securities in larger companies. This factsheet is not intended as, nor should it be taken to be, an offer or solicitation with respect to the purchase or sale of any security or interest in any jurisdiction. Before investing you should read the Prospectus, and the Key Information Document (KID) available from www.strategicequity.greshamhouse.com as they contain important information regarding the Gresham House Strategic plc fund, including charges, tax and fund specific risk warnings. Prospective investors should seek their own independent financial, tax, legal and other advice before making a decision to invest. No person, especially those who do not have professional experience in matters relating to investments, must rely on the contents of this factsheet. If you are in any doubt as to the matters contained in this factsheet, you should seek independent advice where necessary. This factsheet has not been submitted to or approved by the securities regulatory authority of any state or jurisdiction. This factsheet is intended for distribution in the United Kingdom only. Any dissemination or unauthorised use of the factsheet by any person or entity is strictly prohibited.

Please contact a member of the Gresham House team if you wish to discuss your investment or provide feedback on this document. Gresham House is committed to meeting the needs and expectations of all stakeholders and welcomes any suggestions to improve its service delivery. www.greshamhouse.com