Gresham House
Specialist asset management
An educational series of five modules to examine the smaller end of the UK equity market as represented by the Numis Smaller Companies Index.
An educational series of five modules to examine the smaller end of the UK equity market as represented by the Numis Smaller Companies Index.
Gresham House educational webinar series: Numis Smaller Companies Index
When it comes to investing, smaller companies are often dismissed as being too risky, too expensive and generally weaker businesses than their larger counterparts.
In this educational series of five modules launched today in partnership with Gresham House, Professor Paul Marsh and Scott Evans of the London Business School, and part of the team behind the Numis Smaller Companies Index (NSCI), examine the smaller end of the UK equity market as represented by the Numis Smaller Companies Index.
The Numis indices were launched at the start of 1987. They have been published continuously for 33 years and prior to this have a 32-year history which dates to 1955. Since their launch, they have provided the definitive benchmark for monitoring the performance of smaller UK companies.
With the aim of developing a better understanding of smaller companies in the UK market, this series gives valuable insights as well as providing structured CPD learning.
A summary of the five educational modules:
1. An introduction to the Numis Smaller Companies Index (NSCI)
Module includes:
- A brief history of why the Index was created
- Descriptions of the NSCI, NSCI+AIM and Numis Alternative Markets Index (AIM)
- Comparisons of the Numis indices with the FTSE series
- The importance of smaller companies and their long-run outperformance
2. Numis Smaller Companies Index: Performance
Module includes:
- The long-run performance of the NSCI versus the FTSE All-Share in terms of capital gains and total returns
- The importance of re-invested dividends, showing that historically, it has been a case of “the smaller the better”
- Why small caps have outperformed
3. Numis Smaller Companies Index: Small caps are different
Module includes:
- How the small-cap universe is substantially different from the FTSE 100 universe, why this is and why it matters
- Why these differences often lead to widely different performance from small caps, and to a lower correlation with large caps
- The scope for productive diversification
4. Numis Smaller Companies Index: Are small caps riskier?
Module includes:
- A look at the risk profile of small caps both individually and collectively
- The effect of diversification on risk
- How small caps can actually reduce portfolio risk
5. Numis Smaller Companies Index: Factors driving small-caps
Module includes:
- A look at dividend growth within smaller caps and how this compares to large caps
- Are all small caps growth stocks?
- An examination of other style effects within the NSCI, including income, momentum and low volatility
