GB-EN Intermediary

BMO Global Smaller Companies – new Kepler Trust Intelligence report now available

Why Kepler view the trust as an “attractive ‘one-stop shop’ for global small-cap investing
July 2021

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Risk Disclaimer

The value of an investment is dependent on the supply and demand for the shares of the Investment Trust rather than its underlying assets. The value of an investment will not be the same as the value of the Investment Trust’s underlying assets.

Investments in smaller companies carry a higher degree of risk as their shares may be less liquid and investment values can be volatile.

Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.

BMO Global Smaller Companies – impressive performance – both growth and income – has helped the Trust achieve a Kepler Income Rating.

Read the full report:

Key takeaways:

  • BMO Global Smaller Companies offers investors a diversified approach to global small-cap equity investing. The trust is run by lead manager Peter Ewins, who is in turn supported by BMO Global Asset Management’s wider global small-cap team.
  • Peter believes that his balanced approach is becoming increasingly relevant in the current economic climate, reflecting his concerns about possible upwards pressures on inflation and corresponding potential over time for increases in interest rates.
  • A positive outlook for small-cap stocks, highlighting the increased economic activity globally, especially in developed markets. Peter is currently upbeat about the UK, and the trust has presently got close to 30% exposure to this market.
  • Competitive long-term performance and a recent beneficiary of the outperformance of the UK small caps relative to global equities. The trust has also celebrated its 51st year of consecutive dividend increases (one of the longest records for any trust). Despite recent performance and the tailwinds supporting a valuation-sensitive approach to small caps, the trust currently trades on a historically wide discount.

Risk Disclaimer

The value of an investment is dependent on the supply and demand for the shares of the Investment Trust rather than its underlying assets. The value of an investment will not be the same as the value of the Investment Trust’s underlying assets.

Investments in smaller companies carry a higher degree of risk as their shares may be less liquid and investment values can be volatile.

Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.

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