Change of Distribution Policy

10 March 2015

Invesco Perpetual UK Smaller Companies Investment Trust plc

Dividend policy

The Board of Invesco Perpetual UK Smaller Companies Investment Trust plc ("IPU"
or the "Company") today announces a material increase in its dividend
distribution to shareholders on an ongoing basis.

Background

IPU is an LSE-listed investment trust whose investment objective is to achieve
long-term total return for shareholders primarily by investment in a broad
cross-section of small to medium-sized UK quoted companies.

IPU has an experienced portfolio manager in Jonathan Brown. He is supported by
the resources of the Invesco Perpetual UK Equity team which manages assets of
over £25 billion, providing breadth and depth of coverage, access to investment
opportunities and trading strength.

The Company has had a strong performance record, as demonstrated by the
following table:

Ordinary Share price and Net Asset Value cumulative performance                
                                                                               
as at 31 January 2015 (total return) (% growth)                                
                                                                               
Period                          6m      1y      3y         5y      10y         
                                                                               
Share Price                     6.4     5.8     87.1       144.9   244.5       
                                                                               
Net Asset Value                 3.8     2.2     64.6       110.0   212.0       
                                                                               
Numis Smaller Companies (Ex IC) 0.3     -2.6    61.3       103.9   179.2       

Despite this strong investment performance, the Company's shares have
persistently traded at a significant discount to net asset value. Accordingly,
the Board announced on 25 May 2012 that it will make available a number of
options for shareholders to consider at or around the Company's 2017 AGM. These
options for shareholders may include one or more of a continuation of their
existing investment, a rollover into a similar or other investment vehicle and/
or the provision of a cash exit at a price close to NAV. As the Board stated at
the time, one of the benefits it hopes to achieve by this initiative is a
narrowing of the discount to NAV at which the Company's shares trade. Whilst
the discount has narrowed since 2012, the Board believes that more must be done
with this goal in mind.

Immediate Changes to the Company's Distribution Policy

The Board, mindful of the current interest rate environment and the imminent
reform to pension rules, believes that investors will continue to be attracted
to income-producing investments for the foreseeable future.

Therefore, following consultation with the Company's major shareholders
(together holding more than 50% of the Company's issued share capital), the
Board is introducing immediate changes to the Company's distribution policy.

The changes to the distribution policy are as follows:

  * The Board intends to recommend a final dividend for the year ended 31
    January 2015 (payable in June) of 12.15p per share, making a total dividend
    for the year of 13.75p per share (an increase of 111.5% on the dividend for
    the year ended 31 January 2014), equivalent to a yield of 4.00% on the
    current share price (344p). This final dividend will be substantially
    funded out of available income and brought forward revenue reserves. The
    balance to be funded from capital reserves will be in the region of 
    £600,000 (representing 0.3% of net assets)
   
  * Dividends will be funded by distributing 100% of available income each year
    and utilising the Company's powers to distribute a limited amount of
    capital as income. On the basis of the proposed portfolio yield this is
    anticipated to amount to c. 2% of assets for the year to 31 January 2016
   
  * The Company will pay quarterly dividends comprising three equal interim
    dividends followed by a final dividend
   
To reflect the statistical reality of returns over the last 10 years, the
allocation of expenses has been revised and allocated 85% to capital and 15% to
revenue (previous policy, 50/50). The allocation of any finance costs has been
similarly revised.

As a result of these changes, the performance goal of the Company will no
longer include wording to the effect that `the pursuit of income is of
secondary importance'.

The Board believes this change to the distribution policy will further enhance
the Company's appeal as:

  * It will attract those investors seeking higher yield as well as growth in
    capital over the longer term, from a well-diversified portfolio of UK
    quoted smaller companies which the Board believe remains an attractive
    asset class
   
  * The Company becomes more differentiated from its peers in offering
    investors a higher yield
   
  * The potential resulting minor tax disadvantage in distributing capital as
    income should be offset by a permanent narrowing of the discount to NAV at
    which the Company's shares trade
   
Many private investors may hold their investments in the Company through ISAs
and/or Personal Pension Schemes and the Board believes that such investors
should not be adversely affected from a tax perspective by these proposals.

These changes will not affect the Board's commitment to shareholders for a vote
on various options for the Company's future in 2017.

Investment Policy

The Board wishes to make clear to shareholders and prospective investors that
there will be no change to the current investment policy or style although the
portfolio manager will have the scope to hold slightly larger positions in
higher-yielding stocks within the portfolio that fit his normal investment
criteria.

Enquiries:

Andrew Watkins - Invesco Perpetual: 020 7959 1643
William Simmonds - J.P. Morgan Cazenove: 020 7742 4000