Feature

Good for nominal dividend growth

Over 1,000 firms in small-cap universe

Affected by dollar moves

Proxy for index-linked bonds

Could grow by over 10% in 2017

Increased M&A activity

Particularly small cap and domestic companies

Sitting at depressed levels

It is likely that the value rally in equity markets has largely played out and how the current 'value-versus-growth' dynamic continues in 2017 depends on a confluence of factors.

UK seeing rising inflation