FTAdviser.com

Advertising

Mr Williams, senior investment manager at Gartmore, who runs three of the company's closed-end funds - Fledgling, Growth Opportunities and Irish Growth - said although many smaller companies will struggle to survive, a number of firms remain attractively priced.

He said Irish companies had suffered the most since the global economic downturn began.

"The Irish market has come down an awfully long way, but there are certain stocks that are well placed to bounce," he said.

Mr Williams said smaller UK companies were also suffering from a number of the same economic factors affecting Ireland.

He said the recession in the UK, more risk-averse investors, smaller portfolio weightings and negative sentiment surrounding Aim-listed smaller companies had influenced investor perceptions.