AIM Stocks Boost Small Cap Fund Performance

Careful stock selection, including companies listed on the AIM market, have helped smaller companies funds outperform their benchmarks in 2018

Samuel Meakin 1 October, 2018 | 8:05AM
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The FTSE Small Cap index experienced a muted first half of 2018, with a return marginally into positive territory at 0.1% to the end of June. This trailed the larger end of the market as the FTSE 100 posted – an albeit still subdued – 1.7% total return over the same period.

However, the outcome was better for investors in active UK smaller companies funds, which as a collective comfortably outperformed the small-cap index. The average fund in the Morningstar UK Small-Cap Equity Category returned 4.7% in the first six months of the year, while just four funds in the UK Smaller Companies IA Sector underperformed the index.

This strong relative performance is a continuation from last year, when the category average fund outperformed the index by more than 10 percentage points in 2017.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
ASI UK Smaller Companies Inst S Acc155.60 GBP0.52Rating
Blue Prism Group PLC1,164.00 GBP0.00
Fevertree Drinks PLC2,332.00 GBP0.00
Jupiter UK Sml Coms Focus I GBP Inc4.14 GBP0.62Rating
TB Amati UK Smaller Companies B1,739.90 GBP0.09Rating

About Author

Samuel Meakin  is a fund analyst for Morningstar

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