Investing in UK Mid Cap – Easy as ABC?
1 Source: Ranking in Association of Investment Companies (AIC) Sector, UK All Companies, sourced from Morningstar from 2 May 2003 to 31 May 2018. Calculated using capital net asset values plus income reinvested. 2 Andy Brough became Lead Manager on 1 April 2016.
Andy has managed the well-known Schroder UK Mid 250 Fund since its launch in November 1999. His investment career started in 1987 when he joined Schroders as a UK equity fund manager. Previously he worked at Price Waterhouse where he qualified as a chartered accountant. Andy is head of the Schroders London-based pan-European small and mid cap team.
Jean’s investment career started in 1999 after graduating with a BA in Mathematics and French and an MSc in Financial and Industrial Mathematics. Previously she worked at Panmure Gordon and Morgan Stanley, before moving to Hargreave Hale in 2013 as a fund manager. Jean joined Schroders in 2016 and became Co-Fund Manager of Schroder Mid Cap Fund plc in September 2016.
The Company's investment objective is to invest in mid cap equities with the aim of providing a total return in excess of the FTSE 250 (ex-Investment Companies) Index.
The strategy is to invest principally in the investment universe associated with the benchmark index, but with an element of leeway in investment remit to allow for a conviction-driven approach and an emphasis on specific companies and targeted themes. The Company may also invest in other collective investment vehicles where desirable, for example to provide exposure to specialist areas within the universe. The Company may hold up to 20% of its portfolio in equities and collective investment vehicles outside the benchmark index.
The Manager has adopted a unique and consistent investment process, taking a stock specific approach with an emphasis on growth companies. Sector weightings play a secondary role, resulting naturally from stock selection. Fundamental research forms the basis of each investment decision taken by the Manager, which carries out its own research with numerous company contacts. When analysing stocks, the Manager looks for companies with strong management teams with a proven record, good future prospects and a strong business franchise within their markets.
Source: Schroders. For illustrative purposes only.
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.
The Company invests in smaller companies that may be less liquid than in larger companies and price swings may therefore be greater than investment companies that invest in larger companies.
The Company will invest solely in the companies of one country or region. This can carry more risk than investments spread over a number of countries or regions.
As a result of the fees and finance costs being charged partially to capital, the distributable income of the Company may be higher but there is the potential that performance or capital value may be eroded.
The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.