107. Can smaller companies outperform in 2021?

Peter Ewins, manager of BMO Global Smaller Companies trust, tells us why smaller companies have lagged their larger peers in recent years, explains why they have been given a boost by positive news on vaccines and discusses whether they can outperform in 2021. He also gives us a deeper insight into Japanese smaller companies, explaining why they are benefiting from China’s recovery, particularly in the automotive supply chain.
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BMO Global Smaller Companies trust offers investors the opportunity to participate in the potential growth of the world’s smallest companies. Manager Peter Ewin and his team have a repeatable process, which has proved consistent over many years. Having recently celebrated its 130th anniversary, the trust is one of the oldest in the market and has also successfully produced 50 years’ worth of dividend growth for investors.

Read more about BMO Global Smaller Companies trust

What’s covered in this podcast:

  • What it’s been like investing through a pandemic [0:33]
  • Why smaller companies have lagged larger companies in recent years [2:52]
  • How positive vaccine news has boosted smaller companies [3:40]
  • Whether smaller companies can continue to outperform in 2021 [5:00]
  • Which companies have benefited from the ‘vaccine bounce’ [6:32]
  • How Japanese smaller companies are benefiting from China’s recover [8:12]
  • Which Japanese funds the trust invests in [9:31]
  • How the trust’s income stream has held up and if it will use revenue reserves again [11:11]
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