Powered by momentummedia
nestegg logo
Powered by momentummedia
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Invest

‘Surprise performer’ emerges for Aussie investors

  • April 05 2016
  • Share

Invest

‘Surprise performer’ emerges for Aussie investors

By Staff reporter
April 05 2016

Australian small caps have defied sell-offs in equity markets, returning an average return of 10.2 per cent in 2015.

performer emerges aussie investors

‘Surprise performer’ emerges for Aussie investors

author image
  • April 05 2016
  • Share

Australian small caps have defied sell-offs in equity markets, returning an average return of 10.2 per cent in 2015.

performer emerges aussie investors

In a recent update, Lonsec said the S&P/ASX Small Ordinaries Index returned 10.2 per cent in 2015, with micro caps returning 12 per cent – outperforming the S&P/ASX 200, which returned 2.6 per cent.

“Despite raised volatility at the start of 2016, Australian small caps have been the surprise performers,” Lonsec said.

Lonsec general manager of equities Peter Green said: “Australian small caps have turned the market on its head.”

“Small caps have provided better insulation from the recent sell-off, which is not what you would usually expect.”

Advertisement
Advertisement

Mr Green said the small-cap sector’s performance is significant, as smaller companies are usually hard hit when markets fall.

In 2015, however, small caps benefited from being underweight in resources stocks.

According to Lonsec, the highest-performing small-cap fund returned 51.8 per cent in 2015, with the lowest returning -2.9 per cent.

While 2015 came in as positive, Mr Green said small-cap managers will find it challenging to achieve the same level of returns this year.

“While growth was impressive in 2015, fund managers will need to be vigilant and ensure that the investment case for individual shares continues to stack up.”

 

‘Surprise performer’ emerges for Aussie investors
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.