Threadneedle is launching a UK mid-cap fund in September to be run by its smaller companies team. ...
Threadneedle is launching a UK mid-cap fund in September to be run by its smaller companies team.
Paul Cramp, head of the UK smaller companies, will be named manager, along with Bill Barker. The FTSE 250 Oeic sub-fund will expand the group's UK equity portfolio range to nine.
Guy Beech, sales director at Threadneedle, said the group is still finalising the fund's name and charging structure.
'The core philosophy behind the launch of the FTSE 250 fund is that it is investing in a sector of the market where there are perhaps only two other credible fund choices,' Beech said.
'Our small-cap team is well known in the stockbroker community and they have told us that if we can launch a credible alternative they will support us because they want more choice in this area.'
Beech hopes intermediary demand will gather momentum as the fund's track record builds. The group's UK Smaller Companies Growth fund, which Cramp and Barker already manage, is benchmarked against the Hoare Govett Index, which has a 70% mid cap and 30% small cap make-up. They will share research on those larger mid caps outside the Hoare Govett with the group's large cap analyst team.
Threadneedle is also looking to strengthen its small-cap team by replacing researcher, Caroline Clarke, who recently left the group to return to academia.
Although there will be some overlap between the FTSE 250 and UK Smaller Companies Growth portfolios, this will be kept to a minimum and differentiation will be achieved through the latter's investing in stocks with much smaller market caps as well those quoted on Aim.
Barker anticipates the fund will invest in between 50-80 stocks.
Despite improved risk appetite
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Ceremony will take place 13 November