Sector report: The opportunity in European Smaller Companies

The IA European Smaller Companies sector is assuredly not the most popular sector among UK investors today. With anaemic growth in the eurozone and high valuations in other developed equity markets, investors are trying to diversify the risk away. Regional smaller companies sectors all recorded net outflows in the third quarter of 2014, and European Smaller Companies funds were the second worst selling sector last September. UK investors have gone sideways: some have opted for a safer option as reflected by the relatively large inflows into the IA UK Index Linked Gilts and Money Marke...