Small fund managers outclass bigger rivals

Challenger International says small investment funds have outperformed their larger brethren in the year to October 2001.

Alpha Investment Management had a 12.4 per cent return over the period, while Perennial Value Management managed a 21.1 per cent return in the year to August 2001.

Challenger International head of master trust services, John Hamer, says small funds have one advantage over larger funds in that they can adjust more quickly to market conditions.