Smaller companies funds help sector's re-emergence

The last year has seen funds investing into Europe bounce back after two years of losses for many in the sector. Many of the top performing funds during the last year were smaller companies funds - in common with many other areas of investment - and the average one-year return for small-cap funds investing across Europe was almost 44%. It was noticeable that many of the best performing, top quartile funds during the year were highly volatile - an illustration of this was the top performing fund, which had a volatility level of over 13 - significantly higher than even the S&P Europe Smaller...