Sector report: Are we too late to the UK small-caps party?

It is often said that smaller companies are the engine of growth in an economy and, with the UK economy seemingly improving year-on-year, it would make sense for investors to get exposure to this asset class. The UK Smaller Companies sector has been a very strong performer over the last three years, with funds such as River and Mercantile UK Equity Smaller Companies returning 105% and Fidelity UK Smaller Companies up 94.7%. Even some of the sector's largest funds, such as Cazenove UK Smaller Companies, have not let investors down, with a more-than-respectable return of 80.3% over the ...