Invesco Perpetual Global Smaller Companies fund

Andy Parsons, head of investment research at The Share Centre, explains investing in the Invesco Perpetual Global Smaller Companies fund can offer investors both geographical and market cap size diversification.

"For many investors, exposure to smaller companies is confined to a traditional UK fund aiming to combine and blend large cap with a hand full of small to mid cap stocks. However, for the more adventurous investor it can be quite restricting to stay within the UK shorelines.

"There are a growing number of investments offering investors a truly global reach and that seek to identify the very best smaller companies from around the world. The Invesco Perpetual Global Smaller companies fund is one such opportunity

"The vast majority of smaller company funds tend to have a significant number of individual holdings, often in excess of 250/300 with the largest positions and weightings only generally accounting for around 75/100 basis points overall.

"At the end of December 2011 this fund had 447 holdings, providing investors with the comfort that given the often volatile nature of such companies, risk and diversification is spread across a vast number of companies and more importantly across geographical regions as well.

"The fund is managed on a team basis by Invesco Perpetual, with individuals having responsibility for identifying investment opportunities from within their geographical area of expertise. All ideas are presented to their colleagues and discussed ensuring that only the vey best ideas are taken forward and included within the portfolio.

"The fund is currently exposed to around 30 different countries and the largest holding currently only accounts for 0.88% of the fund and the top 4 sectors are 'Industrials', 'Financials', 'Consumer Discretionary' and 'I.T.'"