Managers bullish on continued returns as market rally bolsters UK Small Cos sector

Current climate of low interest rates beneficial as all but one of 60 funds in UK Smaller Companies peer group post gains over six months

The UK Smaller Companies sector, which encompasses UK equities of companies, which form the bottom 10% by market capitalisation, had a buoyant first half of 2009 with returns boosted by the market rally in recent months. The Investment Management Association’s UK Smaller Companies sector average shows a 22.43% return over six months to 30 June, according to Lipper figures. All but one of the 60 constituent funds within the sector posted significant gains with 57 recording double-digit gains. And UK smaller companies fund managers are bullish the sector will continue to provide healt...