The final portfolio typically holds between 40 to 50 stocks. The process will favour the likes of consumer staples, consumer discretionary, health care, technology and industrials as the team says innovation is more prominent in those sectors.
Holdings currently range from the likes of JD Sports to EPAM Systems, a business based in Belarus – but with a US listing – which focuses on helping corporates digitalise their operations.
At least 70 per cent of the fund will be in the mid-cap benchmark at all times, but the managers will hold stocks for up to a year once they graduate from mid-cap index into larger companies.
Ongoing charges on the portfolio stand at 0.99 per cent.
I feel this fund really does have a huge advantage over many of its peers given the excellent small-cap team it already possesses. It is an ideal option for pure exposure to a quality growth portfolio of medium-sized companies.
Darius McDermott is managing director of FundCalibre