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Opinion: Inside view - Small caps outshine their bigger brothers.

Publication: Pensions Week
Publication Date: 20-JUN-05
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Over the past two years, small cap stocks have delivered excellent returns, far greater than those of large cap equities.

Since the market low in March 2003, the FTSE Small Cap ex IT index has gained more than 70% compared with a 37% increase in the FTSE 100 index, despite the correction...

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...in the past three months.

Longer-term history supports continued outperformance by smaller cap stocks. Research by professors Elroy Dimson and Paul Marsh, of the London Business School, show that small cap stocks have cumulatively delivered total returns almost five times greater than large caps since 1955.

Yet the small cap sector has still to earn a routine position in pension fund asset allocation strategies.

Part of the...

NOTE: All illustrations and photos have been removed from this article.



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