UK Smaller Companies Funds Bounce Back

UK smaller companies have staged a strong recovery in performance following a sharp fall last summer after the Brexit vote, but investors have missed out

Samuel Meakin 6 September, 2017 | 8:22AM
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Following a sharp drawdown in the immediate aftermath of the UK’s decision to leave the European Union, UK smaller companies have staged a strong recovery in performance. Sterling’s initial depreciation benefitted the earnings of larger companies with a higher proportion of their revenues coming from overseas, thus leading to their outperformance relative to their smaller, more domestically focused counterparts through the end of June 2016.

The picture since then, however, is somewhat different. The FTSE Small Cap excluding investment trusts index has outperformed the FTSE All Share index by more than 10 percentage points in the 12 months to the end of June.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
ES R&M UK Equity Smaller Coms B Acc3,483.88 GBP0.55Rating
Jupiter UK Smaller Companies I GBP Acc4.03 GBP0.74Rating
Liontrust UK Smaller Companies I Acc2,480.34 GBP0.43Rating

About Author

Samuel Meakin  is a fund analyst for Morningstar

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