Small cap fund benchmark taken over by Numis

Numis is to take over the RBS Hoare Govett Smaller Companies index, used as a benchmark index by a number of small cap fund managers.

The renamed Numis Smaller Companies index was compiled by the London Business School’s Paul Marsh and Elroy Dimson, who have entered into consultancy and licensing agreements.

According to Numis, ongoing fees will be paid to the academics, as well as performance-based royalties, but no initial consideration is to be paid.

The index was first published in 1987 and covers more than 800 companies that make up the bottom 10% of the UK market by value.

Oliver Hemsley, chief executive at Numis, says: “The Numis Smaller Companies Index is the defining benchmark for the universe of UK smaller companies and this addition to our franchise reinforces our leading position in broking, advising and researching UK smaller companies.”