Can elephants really gallop?

In the concept of Evolution, the smallest, fastest and most adaptable have the strongest chance of surviving and prospering. Small cap stocks offer a higher growth dynamic; and we believe there are many profitable undervalued companies, with little or no debt, which have fantastic growth prospects in this area.

After a disastrous year in 2008, small cap companies bounced back and enjoyed a stellar 2009, outperforming large and mid caps. This extraordinary performance was partly due to the heavy falls that they suffered in the crisis. Now as we enter the half way mark in 2010 many of those gains have been surrendered on fears about Greece, CGT hikes and events in the Middle East. We believe this presents a great buying opportunity and that is what we are doing.

As Stephen Ford, head of UK mid-market equities at RBS, says: ''A period of consolidation is expected in the short-term. However, restructuring benefits coupled with robust balance sheets and top line appreciation should underpin earnings upgrades and further outperformance.''?

Well managed funds are the ones that take time to invest and do their homework. We don't try to forecast where the market is going. We look at individual companies that are well managed and have good balance sheets. We buy into stocks that trade at a big discount to their underlying value. What makes us different is that our fund is managed from a long-term value creation perspective.

We believe that it's a great time to buy into the fund. We believe that are still great opportunities in the small cap universe and it is just a case of picking the right ones. Please remember that share prices can go down as well as up. As a measure of confidence our lead manager Tom Winnifrith has recently been adding to his own holding in the fund himself. How many other fund managers do you know why put into the fund rather than just drawing a fat salary?

If you have any questions about investing in the SF t1ps Smaller Companies Growth Fund or if you want a simplified prospectus and an application form please visit our website at www.t1psim.com or email growthfund@t1psim.com

How can we help you?

Buying shares in the SF t1ps Smaller Companies Growth Fund is easy and shares in the Fund are eligible to be held in an ISA, Self Invested Personal Pension, and for inclusion in a non-stakeholder Child Trust Fund account too.

The SF t1ps Smaller Companies Growth Fund provides expert management of your investment at a competitive price.

Benefit from our reduced fee of 2.5% and save more 50% (standard initial fee 5.25%).

It is also easy to transfer your existing ISA into units in the fund. We do all the hard work for you. Fill in the ‘Transferring an existing ISA' section, on page 5 of the application form and send it back to the address on the form and we will do the rest of the work for you.

Don't forget that the value and income from investments can go down as well as up and you will not be able to deal in your investments during the transfer.  Therefore, there is the potential that you may have a loss of income or growth whilst the transaction is being completed. Please also bear in mind that your existing ISA provider may also charge you for making a transfer.

If you have any questions about investing in the SF t1ps Smaller Companies Growth Fund or if you want a simplified prospectus and an application form please visit our website at www.t1psim.com or email growthfund@t1psim.com