Multi-managers are reviewing holdings in UK small-cap funds following a multi-year run higher for the sector, with many opting to move their allocations to overseas small-cap mandates instead.
UK smaller companies funds have been some of the best investments buyers could have made over the past three years, with the average fund delivering 68%, ahead of offerings in Japan or Europe where the average returns were 47% and 61% respectively. Only the US has outperformed, with an average gain of 70% while, on a five-year basis, the US and UK are also neck and neck, with gains of 114% for both again dwarfing the other two regions. The UK is ahead of all the other sectors on a one-year view, despite the setback in March when mid and small-cap stocks sold-off heavily. But following...
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