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

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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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Blue Prism Group PLC1,144.00 GBP0.00
Fevertree Drinks PLC2,200.00 GBP0.00
Merian UK Smaller Coms Foc R GBP Inc2.68 GBP1.08
SLI UK Smaller Companies Inst S Acc107.80 GBP0.56
TB Amati UK Smaller Companies B1,152.44 GBP0.58

About Author

Samuel Meakin  is a fund analyst for Morningstar

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