Falling interest rates will trigger a small-cap recovery

abrdn Global Smaller Companies manager Kirsty Desson sits down with ii's Sam Benstead to discuss her fund, which has delivered disappointing performance since interest rates began to rise two years ago. Desson discusses why this has affected returns, but gives reasons to be optimistic, such as a changing in the economic outlook and the strong business performance of portfolio companies. She says that small-cap shares tend to outperform as interest rates peak and economies go into a downturn. abrdn Global Smaller Companies is a member of ii’s Super 60 list of recommended funds. Please like and subscribe to our YouTube channel. Follow us: Twitter:   / ii_couk   Facebook:   / weareii   LinkedIn:   / interactive-investor   Instagram:   / interactive_investor   Risk warning: These videos are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest and your capital is at risk. The investments referred to in this video may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. AIM stocks tend to be volatile high risk / high reward investments and are intended for people with an appropriate degree of equity trading knowledge and experience. Full performance can be found on the company or index summary page on the interactive investor website. We use a combination of fundamental and technical analysis in forming our view as to the valuation and prospects of an investment. Further information on the basis the methodology of these recommendations can be found on interactive investor’s website. Please note that our videos on these investments should not be considered to be a regular publication. Details of all the historical recommendations issued by ii during the previous 12-month period can be found on the interactive investor website here:www.ii.co.uk/legal-terms/investment-recommendations ii adheres to a strict code of conduct. Contributors may hold shares or have other interests in companies included in these portfolios, which could create a conflict of interests. Contributors intending to write about any financial instruments in which they have an interest are required to disclose such interest to ii and in the article itself. ii will at all times consider whether such interest impairs the objectivity of the recommendation. In addition, individuals involved in the production of investment articles are subject to a personal account dealing restriction, which prevents them from placing a transaction in the specified instrument(s) for a period before and for five working days after such publication. This is to avoid personal interests conflicting with the interests of the recipients of those investment articles. Interactive Investor Services Limited is authorised and regulated by the Financial Conduct Authority.