Australian small and mid-caps have greatly outperformed the broader Australian equities sector, as smaller growth companies see a boost post-crisis.
According to FE Analytics, within the Australian core strategies universe, the Australian small and mid-cap sector had an average return of 16.29%, over the 12 months to 31 December, 2020.
The Australian equity sector had an average return 3.95% and the best-performing fund in the sector was focused on pre-initial public offering (IPO) stocks.
Small and mid-cap sectors had been expected to rebound post-crisis, after strong rebounds in the years following previous crashes.
The best-performing fund was Lennox Australian Microcap which returned 45.4%, followed by OC Micro-Cap (43.14%), DMP Australian Small Caps Trust (42.66%),...
