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Can smaller be stronger?

US Smaller Companies Equity

The US small and mid-cap universe represents a diverse mix of businesses – from established industry leaders to new and innovative “micro-caps” – whose strengths often remain underappreciated, or even unknown, by the broader investment community.

Three reasons to consider this strategy

General Portfolio Risks. Capital risk – the value of your investment will vary and is not guaranteed. It will be affected by changes in the exchange rate between the base currency of the portfolio and the currency in which you subscribed, if different. Equity risk – in general, equities involve higher risks than bonds or money market instruments. Geographic concentration risk – to the extent that a portfolio invests a large portion of its assets in a particular geographic area, its performance will be more strongly affected by events within that area. Hedging risk – a portfolio's attempts to reduce or eliminate certain risks through hedging may not work as intended. Investment portfolio risk – investing in portfolios involves certain risks an investor would not face if investing in markets directly. Management risk – the investment manager or its designees may at times find their obligations to a portfolio to be in conflict with their obligations to other investment portfolios they manage (although in such cases, all portfolios will be dealt with equitably). Operational risk – operational failures could lead to disruptions of portfolio operations or financial losses.

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  • What investors can learn from past election cycles
  • What the future holds for US equity investors
  • Could 2024 prove to be a turning point for US small caps?
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    The outlook for US smaller companies in 2025 (4 mins)

    Portfolio Specialist, Michele Ward, shares the team’s outlook for US smaller companies in 2025 and the potential opportunities and risks to watch.

    Strategy Overview: US Smaller Companies Equity Strategy (4 mins)

    A brief introduction to our US Smaller Companies Equity Strategy, including why we believe an active, strategic allocation to the asset class makes sense.

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