UK smaller companies: 4th quarter gains provide optimism for 2024

Invesco: UK smaller companies: 4th quarter gains provide optimism for 2024

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Invesco UK Smaller Companies Investment Trust plc

While economic signals have been mixed – with 3rd quarter UK GDP data revised downwards and manufacturing activity still soft – there were also signs of economic improvement.

The service sector, which is key for the UK, appears to have returned to growth. Wage increases have remained well in excess of inflation for a number of months now, with full employment and higher interest on savings suggesting that consumer spending should be well supported into the new year.

In this video update, Jonathan reviews the 4^th quarter of 2023 and answers the following questions:

00:23 - What were the key events driving the market during the quarter?

01:55 - How did the investment trust perform over the quarter?

03:23 - What changes were made to the portfolio over the quarter?

04:18 - What is the outlook for UK smaller companies?

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

The Invesco Perpetual UK Smaller Companies Investment Trust plc invests in smaller companies which may result in a higher level of risk than a product that invests in larger companies. Securities of smaller companies may be subject to abrupt price movements and may be less liquid, which may mean they are not easy to buy or sell.

The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.

The Invesco Perpetual UK Smaller Companies Investment Trust plc uses derivatives for efficient portfolio management which may result in increased volatility in the NAV. In addition, some companies are suspending, lowering or postponing their dividend payments, which may affect the income received by the product during this period and in the future.

Important information

All information correct as at 10 January 2024 unless otherwise stated.

This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

Views and opinions are based on current market conditions and are subject to change.

For more information on our products, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. This information is available on the website www.invesco.com/uk/en/investment-trusts.html.

Further details of the Company’s Investment Policy and Risk and Investment Limits can be found in the Report of the Directors contained within the Company’s Annual Financial Report.

If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser.

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