You are here: Home - Investing - Experienced Investor - News -

European small cap outperformance ‘to continue for 10 months’

Written by:
Small cap companies listed on European stock exchanges have outperformed their larger counterparts by 3.3% year-to-date, according to Euromoney Indices.

The last time European small caps delivered sustainable outperformance compared to their larger counterparts was from December 2012 to March 2014, indicating the trend current trend could continue for another 10 months.

This year, the Euromoney Smaller Companies Index has returned 24% to date, compared to 20% for the Euromoney EMIX Europe Index.

The top performing small caps this year have been Banca Popolare di Milano (+76%), Spanish electricals company Gamesa Corporación Tecnológica (+87%) and Finnish tyre producer Nokian (+56.88%).

“Europe’s small caps are arguably the region’s most entrepreneurial and innovative companies and our research indicates that there are more gains to come in the sector,” said Sui Chung, managing director of Euromoney Indices.

“We are firm believers that in today’s low-growth climate investors need to include smaller companies in their portfolios to access meaningful returns. Many fund managers are heralding 2015 as the year for smaller companies and the valuation premium for European small caps relative to large caps has fallen, presenting an attractive entry point for investors.”

Index comparison during last period of small cap outperformance




Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week