Small-cap indices rise not reflected in asset allocation

Investors need more good news and stability before choosing small cap stocks

Outperformance of small-cap indices against the FTSE All Share in 2009 is not resulting in a shift in fund manager asset allocation into UK small caps. Royal Bank of Scotland figures show the Hoare Govett Smaller Companies Index is down 1.2% since the start of 2009 to 16 March, while the FTSE All Share dropped 10.7% during the same period. The statistics also show the FTSE SmallCap and FTSE AIM All Share have fallen 7.7% and 2.7% respectively over the period. But Andrew Crossley, manager of the Invesco Perpetual UK Smaller Companies Growth fund, says he has seen no sign of his peers i...