Giving a good performance

In the UK, smaller companies have outperformed their larger counterparts in three out of the past five calendar years. The large capitalisation companies are represented by the FTSE 100 index, where valuations range between £3bn and £130bn. Smaller companies, as represented by the FTSE Small Cap index (FTSC), have upper market valuations of about £500m, with more than 400 companies within the index. On a five-year compound basis, the two indices provided similar returns, with an 89.2% gain from the FTSC as opposed to 92.8% on the FTSE 100. The similar returns provided over a five-ye...