Invesco: UK smaller companies: brighter times ahead?

Inflation and the response of central banks was once again a significant influence on markets in the second quarter. 

However, while the future is always unknowable, we believe that after a fairly difficult period for the UK economy, and the UK smaller companies’ sector, the outlook is finally looking brighter. 

In his latest video update, Jonathan reflects on the quarter, including the outbreak of AI mania, and answers the following questions:

00:22 - What were the key events during the quarter?

02:24 - How did the investment trust perform over the quarter?

04:16 - What changes were made to the portfolio over the quarter?

05:25 - How do you see the economy and the market progressing as we move through 2023?

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 18 July 2023 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.