Trustnet Magazine 87 September 2022 | Page 41

Performance of sector vs index over 10yrs
Small caps
This is more than twice the 16.4 percentage point figure for the smallcap sector with the next largest difference , IA UK Smaller Companies . As a relatively unpopular sector – IA European Smaller Companies has just £ 2.3bn in assets , spread across 28 funds – it has made sense to close or merge underperformers . Regardless of what has happened before , Kosava believes it will be important to be selective in the environment we are entering now . “ With central banks increasing interest rates in the wake of persistent inflation , recessionary pressures on consumers and individual smaller companies being more susceptible to bankruptcy than their larger counterparts , it pays to employ an active manager in this area ,” she says .

Performance of sector vs index over 10yrs

MSCI Europe Small Cap ( 180.5 %)
IA European Smaller Companies ( 161.6 %)
300 %
250 %
200 %
150 %
100 %
50 %
0 %
-50 %
Sep12
Sep13
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Source : FE Analytics
Issue 87 - September 2022 / 41 /