Demand for Euro small cap funds, ETFs on the rise

Inflows into European small cap funds surged to €8.7 billion ($US11.8 billion) in 2013, the report shows. And through April of 14, inflows ran to €5.0 billion, suggesting another strong year for small cap funds on the Continent.

“Like most equity bull runs, the recent surge in European stocks has seen more spectacular gains for smaller cap companies — and yet this may be the sector that will continue to offer the best opportunities for those fund managers prepared to dig a little deeper,” the report states. “Unlike [investment managers for] large-cap funds, small specialists have a real chance to diversify, to uncover hidden value and to differentiate their funds from competitors — even if there is more pain on the downside.”