UK small cap funds 'surprise' with outperformance since Brexit vote

Average product returned 33.13% over past three years

Lauren Mason
clock
The FTSE All-Share and FTSE 100 indices also made gains since 23 June 2016
Image:

The FTSE All-Share and FTSE 100 indices also made gains since 23 June 2016

The IA UK Smaller Companies sector has been the only open-ended UK equity sector to beat the FTSE All-Share since the UK voted to leave the EU, research from Investment Week and data from FE shows.

This is despite the fact UK small caps have a reputation for being more dependent on the UK economy than their larger, global-facing peers. The average UK smaller companies fund, sitting in the Investment Association's UK Smaller Companies sector, has returned 33.13% since 23 June 2016 to 19 March, while the FTSE All-Share and FTSE 100 indices have gained 27.19% and 28.41% respectively. Meanwhile, the average return of the IA UK All Companies and IA UK Equity Income sectors resides at a respective 22.27% and 18.15%. Why have small-cap funds outperformed? Ben Yearsley, managing di...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

Bestinvest's bi-annual Spot the Dog finds over £45bn is still in underperforming portfolios

Bestinvest's Spot the Dog finds fewest underperformers in six years

Number of dog funds more than halves

clock 08 August 2022 • 4 min read
The £237m Baillie Gifford British Smaller Companies Fund was rated as not providing value.

Baillie Gifford UK equity strategies suffer low ratings in AoV

One red and four amber funds

clock 08 August 2022 • 2 min read
European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Trustpilot