The future is bright for small caps says Invesco.

Investment Adviser, October, 2002

Small companies are taking a battering at the moment, but Invesco Perpetual believes there is a bright future for the sector.

Richard Smith, manager of the GBP240m Invesco Perpetual UK Smaller Companies core fund, said that the sector would outperform the "broader market" in the longer term.

Investors and advisers should consider diversifying their portfolios with smaller companies, as they offer better value and clarity, according to Mr Smith. He said: "Smaller companies have greater growth potential than larger ones and I can get greater access and understanding as to how they are managed."

Mr Smith said that many smaller companies have been vigorous in readjusting their businesses in response to market conditions, and that as a result, the...

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