Why nimble small caps offer the recipe for returns

Investors have "never lost money" by choosing smaller companies over larger ones, according to Allianz Global Investors' Andrew Neville.

The lead manager of the Global Small Cap Equity fund told attendees at Investment Week’s Channel Islands Investment Summit global smaller companies returned more than 100% in the ten years to January 2014. While small caps only delivered 20% in the ten years to March 2009, investors who chose larger caps would have lost 40%, he added. Neville (pictured) said: “We believe people should have a long-term allocation to global smaller companies because over every 10-year rolling period we have ever looked at, you have never lost money holding an allocation in smaller companies.” Small-c...