This page considers the outlook for UK small and mid caps relative to larger peers. The chart on the left plots the valuation of the FTSE 100 against the FTSE 250, which shows that the gap in valuations that opened up since the start of the pandemic is now much smaller. The chart on the right shows that the average UK fund manager owns a significantly higher weighting in small and mid cap companies than are in the FTSE All-Share index.