Euro Smaller Cos unsure on rally continuing

All 14 vehicles in European peer group hit double-digit returns over the past six months, bouncing back from a difficult 2008

The European Smaller Companies sector has bounced back strongly from a difficult 2008, with all 14 funds in the category seeing double-digit returns over the past six months. Consisting of stocks in the bottom 20% of market capitalisation, the IMA European Smaller Companies sector has returned 23.51% over the six months to 10 August, according to Morningstar. While every fund has experienced a strong spike in this period, the sector’s fund managers are unsure whether the rally can persist throughout the remainder of 2009. Over the six months to 10 August, the top three funds in the...