Smaller companies follow up phenomenal 2009

The IMA UK Smaller Companies sector has delivered a second year of strong performance after generating phenomenal returns in 2009.

Whereas last year equities rose regardless of their underlying strength, managers say exposure to top-quality companies has been the key to outperformance this year as investors sought good growth prospects over the ‘dash-for-trash’. Over the year to 1 November, UK Smaller Companies is the best performing IMA sector, returning 21.8%, according to Morningstar. Standard Life Investments’ Harry Nimmo characterises his key investments as having high quality predictable growth. His £784m UK Smaller Companies fund tops the sector with a return of 17.7% over three years, compared to a s...