Core and satellite: The UK smaller companies funds on our radar

The IMA defines the UK Smaller Companies sector as comprising funds that invest at least 80% of their assets in UK equities of companies which form the bottom 10% by market capitalisation. While UK smaller companies is considered a more specialised space, it can be a useful option for larger UK portfolios. Some of the largest returns can be sourced from this area of the market but this brings with it higher levels of volatility. Many smaller companies have significant international sales, so the sector is no longer just a play on the UK economy. The wider universe allows good stock pi...