Positive outlook for small caps

While UK smaller companies investment trusts have had a rough time over the past year, fund managers investing in the sector remain positive on the outlook going forward. Over one year to 31 June 2002, £1,000 invested in the average smaller companies trust would have fallen to £727, while over five years it would have returned £1,089. However, Mark Davids, manager of Fleming Smaller Companies, believes the outlook for the sector is positive relative to large caps. He said: 'The value in the sector, combined with the high weighting in old economy stocks, leaves us confident as to the ...