Fund Objective

The Invesco Perpetual UK Smaller Companies Growth Fund aims to achieve capital growth with an average yield.

View on Past Performance

The UK equity market experienced unprecedented levels of market volatility over September, taking its lead from the US. In this environment, economic news took a back seat in determining stockmarket direction. The Hoare Govett plus AIM ex IT index fell 16.5%. UK interest rates were left on hold at 5.0% on 4 September for the fifth consecutive month.August consumer prices index (CPI) rose to the highest level in 16 years to 4.7% year-on-year, according to the Office for National Statistics, versus 4.4% yo- y in July. The CPI figure was driven higher by rising gas and electricity bills, although this was partially offset by a fall in petrol prices.Bank of England Governor Mervyn King wrote an explanatory letter to Chancellor Alistair Darling, pointing out that, while inflation is expected to peak soon near 5.0%, it was likely to remain above the target 2.0% well into 2009. Elsewhere in the economy, August unemployment rose the most in 16 years (claims for jobless benefits rose 32,500 to 904,900), data continued to point to a slowing housing market, and sterling fell against the US dollar reflecting the weak outlook for the economy.

Fund Details