Invesco Global Small Cap Equity

Small-cap markets around the world have tended to be inefficient due to less analyst coverage and more limited corporate information flow, as well as the sheer size of the universe. This strategy aims to consistently derive performance through bottom-up stock selection while limiting factor risks. Our regional experts perform deep, fundamental research to uncover those companies best able to generate high and sustainable returns on capital, while weighing a range of top-down macroeconomic and market factors to effectively allocate capital across the globe.

Our approach combines bottom-up stock selection with regional geographic allocation. The company research effort is led by six regional investment managers who are part of or lead teams which cover all global developed and emerging smaller company markets. We seek to invest in companies with durable business models, with asymmetric return profiles. Each regional manager is responsible for managing a portion of the portfolio. Asset allocation decisions are made by the lead manager, through a valuation-driven framework and discussions with the team. Changes are incremental and taken with a long-term perspective as keeping portfolio turnover low is a factor believed to improve portfolio performance.