04 Jun 2018
In this video, Jonathan Brown and Robin West, UK Equities Fund Managers, explain how they identify prospects in the small cap market and how they have applied it to their portfolios.
Smaller companies are an area of investing that rarely get as much attention as their larger counterparts, and this can lead to some interesting opportunities.
Watch now as Jonathan and Robin discuss:
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.
Invesco Perpetual UK Smaller Companies Equity Fund
Smaller company funds are higher risk than funds that can invest in larger company sizes. Market conditions, such as a decrease in market liquidity, may mean that it is not easy to buy or sell securities.
The fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the fund. The Manager, however, will ensure that the use of derivatives within the fund does not materially alter the overall risk profile of the fund.
Invesco Perpetual UK Smaller Companies Investment Trust plc
As the investment trust is a smaller companies product, investors should be prepared to accept a higher degree of risk than for a product with a broader investment mandate.
The product uses derivatives for efficient portfolio management which may result in increased volatility in the NAV.
The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.
Important information
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All data is as at 31.03.2018 and sourced from Invesco Perpetual unless otherwise stated.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
Invesco Perpetual is a business name of Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority