IP: UK and Europe lag in global small cap universe

The UK and European markets lag Asia and the emerging world for attractive small cap opportunities, Invesco Perpetual says.

On the 25th anniversary of the group's £235m Global Smaller Companies fund, Invesco Perpetual UK smaller company manager Richard Smith says while he can still identify selective opportunities, he believes it is "less easy" to be bullish on the UK in comparison to other regions. Smith currently favours support services and healthcare, but is bearish on financials and commercial property. "Although we expect the difficulties to spread out more across sectors going forward, we are encouraged that many of the companies we favour look cheap in relation to the wider market," he says. "Po...