Global Small Cap Equity

Investment Objective:

The Global Small Cap Equity strategy seeks long-term capital appreciation by investing in global small-cap stocks and equity-related securities. Financial markets tend to focus on short-term factors, but we believe concentrating on long-term investing rather than current consensus and trends is essential to finding sound investments because companies within the underresearched small-cap global universe operate over long-term business cycles.

The Invesco Edge:

  • Regional expertise. The overall portfolio is managed as a series of regional subportfolios with the asset allocation decided by the Global Smaller Companies Group (GSCG) chaired by Invesco Perpetual's CIO, Nick Mustoe.
  • Experienced, stable investment team. The subportfolios are managed by seven highly experienced regional equity specialists who average 22 years of industry experience and have solid performance track records.
  • Investment process. We take a pragmatic and flexible approach to investing. Our investment approach has no built-in country, sector, stock or style bias. We have the ability to change the portfolio to reflect where we believe the best opportunities are in the market place at any particular point in time.
  • Valuation driven. We focus on identifying companies whose current and future prospects aren't reflected in their stock prices and whose misvaluation will likely be recognized by the market.

Investment Strategy:

We believe in building portfolios with a three-to-five-year time investment horizon where each stock has the potential to deliver positive returns over a full market cycle. Our focus is stock selection, and our assessment of a company and its valuation are the primary components of our decision-making process. Portfolio managers also consider broader implications of macroeconomic issues across global markets and their potential effects on individual stock prices, but our valuation estimates are key. Valuation determines whether a stock, in our opinion, is an attractive investment because we seek to identify companies whose current and future prospects are not reflected in their current valuations on both an absolute and relative basis.

We combine detailed bottom-up and top-down fundamental analysis for new investment idea generation and the ongoing evaluation of portfolio holdings. Bottom-up analysis is our main focus for creating new, and reviewing existing, investment theses because we believe bottom-up analysis will be the largest contributor to long-term alpha generation. Additionally, understanding the top-down macroeconomic background provides a critical component of the bottom-up research process, providing the context against which this research takes place. In our fundamental analysis, we incorporate internal proprietary research, extensive company contact and select, externally sourced research.

This information is provided by Invesco Advisers, Inc.
Invesco Perpetual is a business name of Invesco Asset Management Ltd.
Invesco Advisers, Inc. and Invesco Asset Management Ltd. are both indirect, wholly owned subsidiaries of Invesco Ltd.