# Miton UK MicroCap Trust benefits from oil price rise and metal prices firming

- Link: https://www.directorstalkinterviews.com/miton-uk-microcap-trust-benefits-from-oil-price-rise-and-metal-prices-firming/4121154030
- Published: 2024-04-30T07:34:29+01:00
- Author: Amilia Stone

**[Miton UK MicroCap Trust plc](https://www.directorstalkinterviews.com/company/miton-uk-microcap-trust-plc/mini.l)**(
[LON:MINI](https://www.directorstalkinterviews.com/company/miton-uk-microcap-trust-plc/mini.l))
has announced its Factsheet for the month ended 31 March 2024.

**Manager commentary**

During March, a new trend may have started to develop, with the oil price steadily
rising, and even some metal prices firming late in the month. It was also notable
that the share prices of many of the largest companies also lost momentum during
March.

The trust’s portfolio tends to invest in all areas of the micro-cap market, including
some energy and commodity companies. Commodities are raw materials used to manufacture
consumer products. We include holdings in these industry sectors for two reasons.

 1. The company share price fluctuations of those in the energy and mineral sectors
    tend to move
    independently from other UK industry sectors. By including a range
    of energy and mineral holdingsit greatly improves portfolio diversification.
 2. Furthermore, and perhaps even more importantly in our view, during geopolitical
    tensions when
    many company share prices are often weak, the energy and material
    sectors can sometimes deliverstronger returns than usual. On occasions, they can
    be a lot stronger, as energy and commodity prices spike upwards.

Interestingly, recovery in the energy and commodity sectors tends to favour the 
UK stock market, predominantly because it has such large weightings in these sectors.
Indeed, when inflationary pressures
and recessions were frequent between 1965 and
1985 for example, the returns on these sectors may have been part of the explanation
why the UK stock market outperformed the US stock market.

The trust’s portfolio still includes numerous holdings invested in micro-caps in
many other industry sectors that are also standing on what we believe are overlooked
valuations. As these start to recover, we
anticipate nothing short of a micro-cap
supercycle from here.

Gervais Williams & Martin Turner
31.03.2024

[Fact-sheet_Miton-UK-MicroCap-Trust-plc-Miton-UK-MicroCap-Trust-plc_31-03-2024](https://www.directorstalkinterviews.com/wp-content/uploads/2024/04/Fact-sheet_Miton-UK-MicroCap-Trust-plc-Miton-UK-MicroCap-Trust-plc_31-03-2024.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2024/04/Fact-sheet_Miton-UK-MicroCap-Trust-plc-Miton-UK-MicroCap-Trust-plc_31-03-2024.pdf)

_Miton UK MicroCap Trust (LON:MINI) intends to invest primarily in the smallest 
companies, measured by their market capitalisation and quoted or traded on an exchange
in the United Kingdom._

Share on: