Bestinvest says
Whilst we believe in the importance of small cap exposure in a portfolio we have higher conviction in our rated regional small cap funds.
The fund aims to achieve capital growth through a portfolio of international securities, mainly quoted smaller companies. The fund is run on a carve-out basis, with the whole team deciding on asset allocation and each regional portfolio delegated to the relevant regional specialist manager. All of the sub-portfolios are run from Invesco's Henley office with the exception of the Houston based US portfolio. The non-US portfolios are run on a qualitative basis with a focus on valuation anomalies. Portfolio construction is based on a combination of the outputs from top-down macro analysis and bottom-up stock research. The former is the primary influence on the regional allocation, while the latter determines the stock selection within these countries or sectors and is the key driver. Stock weights are influenced by the team’s conviction on the perceived degree of under-valuation, the value of the stock as a diversifier and regulatory or liquidity constraints.