Four important developments should provide momentum for the asset class.
Investors looking at asset class behaviour and potential hedges in an inflationary environment should look to a mix of small caps, commodities and real assets, according to Franklin Templeton.
European small-caps tend to outperform large caps, but governance needs close watch, according to Andrew Paisley, Edinburgh-based investment director for European smaller companies at Aberdeen Standard Investments.
This week FSA presents a quick comparison of two US small-cap equity funds: the Legg Mason Royce US Small Cap Opportunity Fund and the Threadneedle American Smaller Companies Fund.
China’s small caps are telling a completely different story than larger companies, but they are under-analysed and face-to-face due diligence is required, said Tiffany Hsiao, lead manager of Matthews Asia China Small Companies Fund.
Are emerging market small caps a better bet than the large cap counterparts that passive products focus on? Will Ballard, head of emerging market and Asia Pacific equities at Aviva, explains why he believes they are.
What is a better indication that small caps have conditions for growth than Fed watching? Ross McSkimming, investment director of equities at Aberdeen Standard Investments, answers that and other small cap questions.
Dale MacLennan, investment director for equities, says in the small cap world, higher risk does not equal higher return.
Transparency is an immense challenge when looking at EM small caps, explains Alistair MacDonald, vice president and institutional portfolio manager of Templeton Emerging Markets Group.
FSA compares two emerging markets small-cap funds: the Nordea 1 Emerging Markets Small Cap Fund and the Templeton Emerging Markets Smaller Companies Fund.