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Invesco Perpetual UK Smaller Companies Investment Trust plc update

Video | 16 March 2017

Video information

Duration:00:13:05

Robin West

Robin West

UK Small Cap Equities Fund Manager

Jonathan Brown

Jonathan Brown

UK Small Cap Equities Fund Manager

Investment risks

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. Past performance is not a guide to future returns.

When making an investment in an investment trust 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 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.

As this is a smaller companies investment trust, investors should be prepared to accept a higher degree of risk than for an investment trust with a broader investment mandate.

The investment trust may invest in derivatives. This means that the net asset value of the investment trust may, at times, be highly volatile. The use of derivative instruments involves certain risks (including market or communication breakdown, counterparty failure and credit risk) and there is no assurance that the objectives for the use of such instruments will be achieved..

The investment trust may use borrowings to invest in the market. The use of borrowings may enhance total return when the value of the investment trust’s assets is rising, but it will have the opposite effect when asset values fall. The use of borrowings may increase the volatility of the share price and the net asset value per share. In certain circumstances, the investment trust may be required to repay borrowings and this could adversely affect income and capital returns.

The investment trust expects to increase dividend payments by making use of its ability to distribute capital. To the extent the investment trust uses its ability to fund dividends using capital profit this will reduce capital growth.

Notes

  • Over the last 61 years the Numis Smaller Companies ex-Investment Trusts Index returned an average of 3.5%p.a. above the FTSE All-Share index. Source: Numis Corporation, 16 January 2017.
  • The dividend yield of the Invesco Perpetual UK Smaller Companies Investment Trust plc was 3.4% as at 31 December 2016. This is calculated by dividing the total dividend divided by the current share price (excluding any special dividends paid).
  • The enhanced dividend policy for the investment trust was announced on 10 March 2015.

Important information

All information as at 20 February 2017.

Where Jonathan Brown and Robin West have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco Perpetual investment professionals.

Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase, hold or sell.

For more information on our products, please refer to the relevant Alternative Investment Fund Managers Directive document (AIFMD), the Investment Trust ISA and Savings Scheme Key Features and Terms & Conditions and the latest Annual or Half-Yearly Financial Reports. This information is available from the Literature section.

Issued on behalf of the board of Invesco Perpetual UK Smaller Companies Investment Trust plc by Invesco Fund Managers Limited. Authorised and regulated by the Financial Conduct Authority.

Tags: Equity, UK, Investment, Market