Chelverton Asset Management, a London-based UK small cap equity specialist fund management boutique, is set to launch an open-ended complement to the Small Companies Dividend Trust plc, a close-ended investment company that currently tops the UK small cap investment trust sector over the past five years.

Structured as a UK OEIC the Chelverton UK Equity Income Fund will replicate the portfolio of its close-ended peer and have an anticipated initial gross annual yield of 4.20 percent paid on a quarterly basis. It will not be able to use leverage, however, and this may compromise capital growth. At present the Small Companies Dividend...