Invesco Perpetual UK Smaller Companies Investment Trust Plc
UK Smaller Companies
Rated Fund 2017-2019. Ideal for those who need an income
Named the Best UK Growth Trust in Money Observer’s 2017 investment trust awards, Invesco Perpetual UK Smaller Companies aims to appeal to investors who are attracted to the growth potential of smaller companies but also need an income.
In March 2015, its board decided to start paying a materially higher dividend to shareholders by taking a small contribution from capital profits if necessary, and to make quarterly income payments. At the end of 2018, it yielded 4.7%. The move saw the trust’s discount to net asset value narrow from low double digits to low single digits.
The investment strategy remains the same, which is to invest in a broad cross-section of small to medium-sized UK quoted companies, including those listed on the Alternative Investment Market. Jonathan Brown, who has taken the trust from strength to strength since he took charge in June 2014, and his deputy Robin West seek to invest in well-managed, financially strong companies with unique propositions or clear, competitive advantages.
They run a portfolio of 80 to 100 stocks. They take a stock-picking approach, looking for companies that either have great products or services, or are exposed to higher growth niches within the UK economy or overseas. Target companies also need to be able to make strong profit margins and have a means of preventing them being competed away.
In the current low-growth environment they 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 01 January 2019.See all Money Observer rated funds
|Future PLC||3.38 %|
|Clinigen Group PLC||2.77 %|
|Coats Group PLC||2.72 %|
|Consort Medical PLC||2.64 %|
|RWS Holdings PLC||2.37 %|
|4imprint Group PLC||2.32 %|
|Faroe Petroleum PLC||2.18 %|
|Equiniti Group PLC||2.11 %|
|Johnson Service Group PLC||2.10 %|
|Fisher (James) & Sons PLC||2.02 %|
|United Kingdom||99.06 %|
|Consumer Cyclical||28.26 %|
|Real Estate||8.70 %|
|Financial Services||7.56 %|
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.
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