Article

Invesco Perpetual UK Smaller Companies Investment Trust plc: Q2 2021 update

27 July 2021
Jonathan Brown
Jonathan Brown
UK Small Cap Equities Fund Manager

In this quarterly update, Portfolio Manager Jonathan Brown reflects on Q2 2021 from the perspective of the UK smaller companies market, economy and the trust portfolio in this short video.

Questions answered:

  • What has been happening in the market over the quarter?
  • How did the trust perform?
  • What is your outlook for UK smaller companies?

  • 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.