Fund overview
The Royal London UK Mid-Cap Growth Fund aims to maximise capital growth over the medium to long term by investing in a concentrated portfolio of 40-60 stocks. The fund manager will invest principally in UK listed companies that comprise the FTSE Mid 250 (ex Investment Trust) Index, but may also invest outisde this benchmark, typically in stocks which have recently exited or are likely to enter the index.
Manager
Derek Mitchell is fund manager for both the UK Mid-Cap Growth Fund and the UK Opportunities Fund, joining RLAM in 2007. He has a great deal of fund management experience, developed during his 21 years at F&C Asset Management and its antecedent companies, ISIS Asset Management and Royal & Sun Alliance. Most recently, he spent the nine months prior to joining RLAM successfully managing a directional long/short global media fund at investment boutique, Rutherglen Capital. He has an impressive track record of managing both institutional and retail mandates with a particular emphasis on UK High Alpha funds.
Investment approach
At the heart of Derek’s management style is his belief that in order to have a micro view you must first have a macro view. Identifying what is currently driving, and what will drive, the global economy is key to selecting the right sectors and companies. To this end Derek works closely with our economist, his fellow fund managers, external brokers and strategists in order to pinpoint economic drivers.
Having identified those sectors that are capable of delivering consistent earnings performance Derek ranks them on a variety of valuation criteria to determine which sectors to back with the most conviction. His final overlay is to identify those sectors or Mid 250 stocks that can benefit from existing or future themes such as emerging market growth and outsourcing. He looks for companies whose market value is below their long term worth and where there is a catalyst to exploit this undervaluation and provide positive earnings surprises.
The result of Derek’s evaluation of the macroeconomic environment and careful stock selection is a high conviction fund that gives investors access to his best stock ideas amongst the diverse FTSE Mid 250 universe.