Australia’s small-cap managers face a reckoning this year after a horror stretch of poor returns triggers an exodus of money from the sector and forces a wave of fund closures.
A toxic combination of stubborn inflation, rising interest rates and a housing downturn has hit the smaller end of the sharemarket that is particularly vulnerable to economic growth. In Australia, the S & P/ASX Small Ordinaries Index has tumbled 16 per cent in 2026.
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