Equities  

Equity boutique SW Mitchell launches UK fund

European equity boutique SW Mitchell has broadened its range of products with the launch of a UK equity fund for manager Brian Cullen.

The group at present runs only European equity funds but has been investing in UK companies as part of its pan-European funds and in institutional segregated mandates.

The fund is the fourth Ucits fund the group has launched and will be run by Mr Cullen, who has worked closely with founder Stuart Mitchell in selecting UK stocks.

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The group said the fund would take an all-cap approach and would be “actively managed”.

“Similar to the positioning in our broader European strategy, the core of our UK portfolio is in those companies exposed to a domestic recovery,” Mr Cullen said.

“While many domestically-oriented stocks have done very well in the past 12 months, we believe the market continues to underestimate the recovery in a number of areas – such as homebuilders and banks.

“Some in the market are suggesting the homebuilders are approaching the end of their cycle, but we think the sector is only a few months into the beginning of an upturn which may see years of high returns.”