Strategic Equity Capital : Factsheet – 31 December 2022

Strategic Equity Capital plc

31 December 2022

Strategic Equity Capital (SEC or the Fund) is a specialist alternative equity trust. Actively managed, it maintains a highly-concentrated portfolio of 15-25high-quality, dynamic

UK smaller companies, each operating in a niche market offering structural growth opportunities.

Fund objective

SEC aims to achieve growth in the value of investments over a medium-term period, principally through capital growth.

Investment approach

The Investment Manager applies its highly disciplined private equity approach to public markets, with constructive corporate engagement and thorough due diligence. The investment team’s experience in this area has shown the potential for strong returns. The team can invest in a number of ways to help companies achieve their goals, including:

Providing primary capital
Supporting changes in strategic focus or operational performance
Pre-IPOfunding
Providing a catalyst for M&A

Gresham House aims to have a considerably higher level of engagement with investee company stakeholders, in order to exploit market inefficiencies and support a clear plan to create value over the long term.

Fund manager

Ken Wotton

22 years’ experience

Fund information

Investment manager

Gresham House Asset Management Limited

Launch date July 2005 Net assets £150.4mn

Market capitalisation £142.4mn Share price 275.0p

Net Asset Value (NAV) per share 292.85p Shares in issue 51,368,273

Fund performance

Cumulative rebased total returns

Current holdings 17 Yield (historic) 0.73% Ongoing charges 1.23%

800

700

600

500

400

300

200

100

Jun 09

Dec 10

Jun 12

Dec 13

Jun 15

CAGR1

15.0% SEC NAV

10.8% FTSE Small Cap ex IT

1. CAGR: Compound Annual Growth Rate

Dec 16

Jun 18

Dec 19

Jun 21

Dec 22

Source: Bloomberg, Juniper Partners as at 31 December 2022, net of charges – FTSE Small Cap data rebased to SEC start NAV June 2009. FTSE Small Cap ex IT – excluding Investment Trusts. Not an offical benchmark, used for comparative purposes only.

Current level of gearing 0%

Discount to NAV 6.1%

Performance fee

10% above rolling 3-year FTSE Small Cap ex IT Total Return +2% p.a., subject to high watermark

Dividend Annual (November) Asset class UK Smaller Companies

Comparator index

FTSE Small Cap ex IT Total Return

Trust codes

SEDOL: B0BDCB2

Ticker: SEC.LN

ISIN: GB00B0BDCB21

Source: Gresham House and Juniper Partners, as at 31 December 2022 and historic yield for the 12-month period to 31 December 2022

Capital at risk.

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

Discrete performance				Source: Bloomberg, as at 31 December 2022
Discrete annual returns		Q4 2022	2021	2020	2019	2018	2017
Share Price Total Return		5.8%			-4.7%		25.9%	-17.6%	20.2%
	37.4%
NAV Total Return		2.4%	26.6%		-0.9%		23.0%	-14.1%	21.7%
FTSE Small Cap Total Return		8.8%	31.3%		1.7%		17.7%	-13.8%	15.6%

Past performance is not necessarily a guide to future performance.

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

Top 10 holdings	Source: Gresham House Asset Management Limited
(portfolio at 31 December 2022)
Holding		NAV
XPS Pensions Group
	13.3%
Medica Group		13.0%
Wilmington		8.3%
Brooks Macdonald Group		7.4%
Fintel		7.4%
Hostelworld Group		6.7%
Ten Entertainment Group		5.9%
Tribal Group		5.4%
LSL Property Services		5.0%
Inspired		4.3%

Sector allocation

7.2%

5.9%

25.0%

8.3%

6.5%

16.6%

14.4%

16.0%

Why SEC?

Expertise and track record: Fund Manager

Ken Wotton and his team are specialists in identifying great investment opportunities in smaller UK equities, and have a proven, long- term performance track record.

Distinctive: Gresham House’s UK equity team’s investment process employs a `private equity approach to public markets’, a rigorous and repeatable methodology based on private equity investing techniques to deliver value and returns on investment

Powerful network: Our network of advisers and connections provides challenge, validation and insight to the investment team which in turn drives better decision making, stock selection and ultimately, value to shareholders. The network and advisers can also be connected to portfolio companies to support their growth

Active and engaged: We invest in a highly- concentrated portfolio of 15-25 companies. The investment team is actively engaged with investee companies, working closely to build superior shareholder value

Focus within an investment trust structure: The

structure of the investment vehicle allows the investment team to be truly long term and to run a more concentrated portfolio of stocks with a very high degree of conviction

Key risks

The value of the Fund and the income from it is not guaranteed and may fall as well as rise. As your capital is at risk you may get back less than you originally invested
Past performance is not a reliable indicator of future performance

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

Portfolio manager

Gresham House Asset Management Ltd (GHAM)

As the operating business of Gresham House plc, GHAM manages and advises funds and co-investments across a range of differentiated alternative investment strategies for third-party clients. Gresham House plc (ticker: LON:GHE) is a London Stock Exchange quoted specialist asset manager and adviser with c.£7.5bn AUM.

Source: Gresham House plc as at 30 Sept 2022, unaudited figure.

Contact details

For further information, please visit SEC’s website: www.strategicequitycapital.com

Ken Wotton

Fund Manager k.wotton@greshamhouse.com

Chris Elliott

Head of Wholesale Retail Funds +44 (0) 78279 20066 c.elliott@greshamhouse.com

Andy Gibb

Director, Sales

+44 (0) 78490 88033 a.gibb@greshamhouse.com

Secretary

Juniper Partners, 28 Walker Street, Edinburgh, EH3 7HR

+44 (0) 1315 386 608

Business services	Financials	Consumer
Healthcare	Industrial	Net cash
Software	Media

Source: Gresham House(portfolio at 31 December 2022)

Due to rounding, figures may not add up to 100% on face value

Index weighting

7.2%

10.1%

48.2%

34.5%

FTSE Small Cap	Other
FTSE AIM	Cash

Source: Gresham House (portfolio at 31 December 2022)

Due to rounding, figures may not add up to 100% on face value

Market cap breakdown

Micro Cap (<£250mn)	49.1%
Small Cap (£250mn – £1.5bn)	43.6%
Net Cash	7.2%

Source: Gresham House (portfolio at 31 December 2022)

Due to rounding, figures may not add up to 100% on face value

Important Information: The information contained in this document (the Document) is being communicated in the United Kingdom for the purposes of section 21 of Financial Services and Markets Act 2000 and has been issued by Gresham House Asset Management Limited (“GHAM” or the “Manager”). GHAM whose registered office is at 5 New Street, London, EC4A 3TW is a company authorised and regulated by the Financial Conduct Authority (FCA) (no.682776). The information should not be construed as an invitation, offer or recommendation to buy or sell investments, shares, or securities or to form the basis of a contract to be relied on in any way. GHAM provides no guarantees, representations, or warranties regarding the accuracy of this information. No third-party liability is accepted by GHAM, its members and employees, or its affiliates and their directors, in respect of errors and omissions, other than under the duties and liabilities of the Financial Services and Markets Act 2000. This Fund is a closed-ended investment company whose shares are listed on the London Stock Exchange and an alternative investment fund under the Alternative Investment Fund Managers Directive. This fund may experience high volatility and investors may have difficulty selling, or be unable to realise, their shares at the quoted market price (or at the prevailing net asset value per share), or at all. It may use leveraging. Financial Services Compensation Scheme: In the event that Gresham House Asset Management Limited cannot meet its liabilities, the scheme will cover eligible claimants for up to £85,000. Please note, the scheme does not cover a failure of the Strategic Equity Capital plc. Potential investors are advised to independently review and/or obtain independent professional advice and draw their own conclusions regarding the economic benefit and risks of investing in the securities and legal, regulatory, credit, tax, and accounting aspects in relation to their particular circumstances. The recipient should consult its tax, legal, and accounting or other advisers about the issues discussed herein and shall be solely responsible for evaluating the risks and merits involved in the content of this Document. This Document is provided for the purpose of information only and before investing you should read the Prospectus and the Key Investor Information Document (KIID) as they contain important information regarding the Fund, including charges, tax and fund specific risk warnings and will form the basis of any investment. The Prospectus, KIID and application forms are available from Link Fund Solutions, the Authorised Corporate Director of the Fund (Tel. No. 0345 922 0044). Investors are reminded that past performance is not indicative of future results. 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. No person, especially those who do not have professional experience in matters relating to investments, must rely on the contents of this Document. If you are in any doubt as to the matters contained in this Document, you should seek independent advice where necessary. This D ocument has not been submitted to or approved by the securities regulatory authority of any state or jurisdiction. This Document is intended for distribution in the United Kingdom only. Any dissemination or unauthorised use of this Document outside the United Kingdom 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 presentation. 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 | (0)20 7382 0999 | info@greshamhouse.com

Disclaimer

Strategic Equity Capital plc published this content on 31 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2023 15:07:04 UTC.

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Sales 2022	-17,6 M -21,8 M -21,8 M
Net income 2022	-20,3 M -25,1 M -25,1 M
Net cash 2022	16,4 M 20,2 M 20,2 M
P/E ratio 2022	-8,46x
Yield 2022	0,71%