Standard Life UK Smaller Companies interim report covering the second half of 2013 shows the fund underperforming its benchmark by some margin (NAV total return 17.6% vs. Numis Smaller Companies ex Investment Companies return of 21.0%). The share price did better than the NAV, returning 19.6%.
The manager’s report ascribes the underperformance to lack of exposure to “second-line, economic recovery-exposed retailers, employment agencies and investment banks” as well as a few stock specific problems including holdings in Paddy Power, Waterlogic and EMIS Group.