Small and mid cap companies continue to look attractive, following a year of outperformance, and wit...
Small and mid cap companies continue to look attractive, following a year of outperformance, and with liquidity easing, the FTSE could be left lagging behind again, according to Chris Baird, UK smaller companies fund manager, at Cazenove.
He said: "Going back 20 years, the Hoare Govett smaller companies index has outperformed 12 times against eight and well over half of the smaller companies funds outperformed their benchmark."
Baird is bullish about small caps' higher exposure to the domestic consumer economy and greater number of cyclicals, in a period of lowering interest rates and a weakening pound
His main concerns are the effects of a possible tech hangover and related profits warnings hitting the sector, coupled with a fear that the sector may have seen the 'January effect', whereby performance early in the year tails off for the remainder.
Andy Brough, small and mid-caps fund manager at Schroders, is also bullish about the sector, believing it shows greater growth potential than the FTSE.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November