Invesco Perpetual UK Smaller Companies Investment Trust Plc
UK Smaller Companies
Rated Fund 2017-20. Ideal for investors who rely heavily on income
Invesco Perpetual UK Smaller Companies, named the Best UK Growth Trust in Money Observer's 2017 investment trust awards, aims to appeal to investors who are attracted to the growth potential of smaller companies but also need an income.
In 2015 its board decided to start paying a higher dividend to shareholders, by taking a small contribution from capital profits if necessary, and to make quarterly income payments. At the end of 2019, it yielded 3%. As a result, the trust's discount to net asset value narrowed from low double digits to low single digits. Indeed, shares traded at a premium for parts of 2019.
Jonathan Brown, named as co-manager on the strategy since 2011 and lead manager since the end of 2013, has presided over a long period of outperformance alongside his deputy since 2015, Robin West. They run a portfolio of 80-100 stocks, a broad cross-section of small and medium-sized UK quoted companies, including those listed on the Alternative Investment Market. They seek to invest in well-managed, financially strong companies with unique propositions or clear competitive advantages. They like companies that either have great products or services, or are exposed to higher-growth niches in the UK economy or overseas. Holdings need to be able to make strong profit margins and have a means of preventing these from being eroded by competitors.
In the current low-growth environment, the managers favour stocks with self-help characteristics - companies with the ability to grow profits independently of the wider economy. This can include restructuring stories or businesses that have scope to roll out a successful concept more widely. Acquisitions and innovation are other avenues for growth.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Future PLC||3.77 %|
|4imprint Group PLC||3.55 %|
|Invesco Sterling Liqdty Port Agcy||3.46 %|
|CVS Group PLC||2.79 %|
|Clinigen Group PLC||2.43 %|
|RWS Holdings PLC||2.41 %|
|Consort Medical PLC||2.40 %|
|Johnson Service Group PLC||2.38 %|
|Sanne Group PLC||2.37 %|
|Polypipe Group PLC||2.25 %|
|United Kingdom||97.37 %|
|Consumer Cyclical||15.73 %|
|Financial Services||10.57 %|
|Communication Services||10.02 %|
|Real Estate||9.58 %|
Robin joined Morley in 2004 as a fund manager ion the UK Specialist and Smaller Cap Team. He joined from Oriel Securities where he worked as a small companies analyst. Previously he spent 8 years as a smaller companies fund manager at Invesco. Before that, he spent 5 years at KPMG working on audit and special assignments for a wide variety of clients. Robin has a MA in Natural Sciences from Cambridge University. He has the following professional qualifications: ACA, IMC and CFA
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.