Audio

Invesco Perpetual UK Smaller Companies Investment Trust plc: 2021 update

13 May 2021
Jonathan Brown
Jonathan Brown
UK Small Cap Equities Fund Manager
Robin West, Fund Manager
Robin West
UK Small Cap Equities Fund Manager
Invesco Perpetual UK Smaller Companies Investment Trust plc: Q1 2021 update

In this quarterly update, Portfolio Managers Jonathan Brown and Robin West reflect on Q1 2021 from the perspective of the UK smaller companies market, economy and the trust portfolio in this series of short videos.

Scroll down to watch the videos, covering five key areas of interest.

1.    Market update

 

Questions answered:

  • What has been happening in the UK Smaller Companies area of the market?
  • Why UK Smaller Companies?
  • Why is now a good time to be looking at UK Smaller Companies?
Market update

2.    Philosophy and positioning

Questions answered:

  • What is the investment approach of the trust?
  • How is the portfolio positioned for the COVID recovery?
Philosophy and positioning

3.    Performance update

Questions answered:

  • What has performed well and perhaps not so well over the quarter and what changes have been made?
Performance update

4.    Economic outlook

Questions answered:

  • What is your outlook for the UK economy and UK Smaller Companies?
Economic outlook

5.    Themes

Questions answered:

  • What themes are currently in the portfolio?
  • What is the Trust’s dividend policy?
Themes

  • 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 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.

    As a result of COVID-19, markets have seen a noticeable increase in volatility as well as, in some cases, lower liquidity levels; this may continue and may increase these risks in the future. 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.

  • 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.

    When making an investment in an investment trust/company you are buying shares in a company that is listed on a stock exchange. The price of the shares will be determined by supply and demand. Consequently, the share price of an investment trust/company may be higher or lower than the underlying net asset value of the investments in its portfolio and there can be no certainty that there will be liquidity in the shares.

    If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser. For details of your nearest financial adviser, please contact IFA Promotion at www.unbiased.co.uk.

    For more information on our investment trusts, 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 our website.