Nimmo predicts 10% growth in small caps

Standard Life's Harry Nimmo is predicting UK small caps will rise 10% in 2011, driven by emerging markets.

The manager of the £784m UK Smaller Companies fund says the sector will benefit from exposure to emerging market growth, although he expects the next six months will be led by companies with more speculative businesses. “I do not think it is going to be a spectacular year in 2011, but I expect the Hoare Govett Smaller Companies index to deliver about 10% and I think we will do better,” he said. “At the moment, markets are being quite buoyant and new issues are finding it easier to raise money. That has helped these blue sky companies, things like Rockhopper and one or two of the gold ...