It might not surprise our regular readers that the top performing funds of the first quarter of this year were focused on the UK and small caps. And the topmost on the intersection of the two.
Britain has organised a strong vaccine rollout, and despite some debate about the speed of reopening allowed to businesses particularly compared to the other frontrunner, the US investors are betting that its companies have been given a headstart.
That has been benefiting the more domestically focused FTSE 250 rather than the more global FTSE 100. But it is small caps both here and abroad that are set to reap the biggest benefits from the recovery, being nimble and full of rapid growth potential.
Investors considering their new Isa year's options will often look to medium-term trends when choosing funds. But they must be confident that that trend will persist into the long term.
There's no reason to think that UK small caps will not continue prosper (EU trade wrangles aside perhaps), but a fair amount of that future success might already have been priced into funds and trusts.