Small caps underperform

The average smaller companies fund needs to return more than 66% over the next 12 months to make up for the past year's losses and bring investor's capital back to its original value. European Smaller Companies has been the second worst performing Autif classification, after Technology and Telecoms, over the past 12 months. Despite a rally of 8.88% over the week to 4 September, European Smaller Companies funds on average need to return 89.86% over one year to restore investors' capital to its original value. According to Standard & Poor's calculations, based on a bid to bid basis, even ...