THE £1.4 billion Aberforth Smaller Companies Trust was significantly ahead of its benchmark index in the six months to June, posting a 13.8 per cent total return on net asset value.

The Numis Smaller Companies Index (excluding investment companies)posted a 9.7 per cent total return. Trust manager Aberforth Partners noted the outperformance had been driven by stock selection, adding: “It is noteworthy several of the portfolio’s larger holdings performed particularly well and that there were few significant large share price declines among the holdings.”

It observed the superior performance of small companies so far in 2017 had seen them recover all of the ground lost against large companies in the immediate aftermath of the Brexit vote.

But it added: “It would be pleasing to conclude from the subsequent recovery in small company share prices that Brexit has been well handled and that its attendant risks have diminished – unfortunately this is not the case. Rather, the bounce back enjoyed by small companies has been led by overseas-oriented sectors.”