Smaller companies: starting to turn?

The long-awaited turnaround in smaller companies is unlikely to happen just because shares are lowly-valued. However, an improving economic and interest rate backdrop could spark renewed interest in the sector. M&A activity is also providing support for the smaller companies sector

abrdn
(Image credit: abrdn)

Abby Glennie and Amanda Yeaman, managers of abrdn UK Smaller Companies Growth Trust

Investors in UK smaller companies are justified in feeling impatient. The turnaround in the sector has been slow to arrive, and poor sentiment has persisted far longer than justified by the on-the-ground experience of most smaller companies. However, a number of factors are coalescing that may improve sentiment towards this unloved part of the market. 

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