INVESTING Individual Investor Financial Adviser Institutional Investor FUNDING Entrepreneur Real Estate

Targeting growth? This could be the best opportunity in the last decade

Understanding the potential of smaller UK companies

Richard Power, an expert in smaller company investing, sat down with Simon Rogerson, Co-founder of Octopus Group, to discuss why we think now is the best buying opportunities in UK smaller companies in over a decade.

Personal opinions are our own and should not be seen as advice or recommendation. Past performance is not a reliable indicator of future results. Please see the five year performance table below. 

Strong signs sentiment is picking up

Risks to bear in mind

Capital at risk

The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.

Tax relief is not guaranteed

For the Octopus AIM Inheritance Tax Service, tax relief depends on the companies we invest in maintaining BR-qualifying status. Tax treatment depends on individual circumstances and may change in the future.

The investment may be volatile and difficult to sell

The shares of smaller companies could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. These shares may also be harder to sell.

Five-year performance comparison of the UK All Share and Small Cap indices

Annual % return to 31 May

FTSE Small Cap TR15.1-5.3-5.353.1-9.8
FTSE All Share TR15.40.48.323.1-11.2

Past performance is not a reliable indicator of future results.

Source: Lipper, as of 31 May 2024. Returns are based on published dealing prices, single price mid to mid with net income reinvested, net of fees, in sterling. Investment Association performance represented by the average fund performance of respective IA total return sectors.

How to access smaller company investments

We actively manage these investments, meaning we have a hands-on role in picking stocks we believe can deliver significant outperformance, and in helping our portfolio companies scale.