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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.

Update on planned return of capital to shareholders

11 April 2024

At a General Meeting held on 3 April, 56.65% of the votes cast were in favour of Resolution 1. As Resolution 1 was proposed as a special resolution (75%) it was not carried. DSM cannot, therefore, implement its proposed B Share Scheme to return cash to shareholders in accordance with its investment objective and policy.

Other than shares controlled by Milkwood Capital, a new investor opposed to the managed wind-down of DSM, less than 0.28% of the votes cast voted against Resolution 1. Given that the votes cast in favour of Resolution 1 shows continued support from shareholders for the managed wind-down of the Company and the distribution of cash proceeds, the Board has decided today to declare a special dividend of 30p per share, equivalent to £13.98m, with a further special dividend of at least £3.7m (which would equate to 8 pence per share) expected to be made by 30 June 2024. 

Chairman Hugh Aldous commented: "As a Board, we are committed to doing the right thing for all our shareholders. We believe that the B Share Scheme offered a tax-efficient and cost-effective way of giving effect to the wishes as overwhelmingly expressed by our shareholders on 28 February. However, given today's result and the fact that our preferred proposal has been blocked by a new shareholder with an agenda of its own, we believe that the correct thing to do is to press ahead with a dividend to shareholders which, while not our preferred route, has the merit of fulfilling the mandate we were given to wind-down the Company and return cash proceeds forthwith." 

On 11 April, the shares of DSM went ex-dividend – for those shareholders on the register at that date they will receive a dividend of c.30p on or around 26 April 2024.

The full announcement can be found here


Annual management charge: 1% on market cap

Ongoing charges:

Ongoing charges – The ongoing charges for the year ending 28 February 2023 were 1.94%. These charges represent DSM’s management fee and all other operating expenses excluding any finance costs, expressed as a percentage of the average daily net assets during the year.


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.

Downing Strategic Micro-Cap Investment Trust board photo