UK Mid Cap Growth Fund

Fund Objective

The Fund's investment objective is to achieve capital growth  over the medium term (3-5 years) by investing at least 80% in the shares of UK medium-sized companies listed on the London Stock Exchange.The Fund’s performance target is to outperform the FTSE 250 ex-IT (investment trust) Index (the "Index") over rolling 5-year periods. For further information on the Fund's index, please refer to the Prospectus, available via the fund information section of this website.

Fund managers

 Henry Lowson joined Royal London Asset Management in September 2016 as a Senior Fund Manager and is lead manager on the RL UK Smaller Companies and RL UK Mid Cap Growth Funds.  Henry began his fund management career in 2005, spending almost 12 years working for AXA Investment Managers. In May 2012 he became lead Fund Manager of the AXA Framlington UK Smaller Companies Fund, which he ran successfully until joining RLAM.  He was also responsible for co-managing a variety of segregated UK small/mid cap mandates while at AXA.  He is a CFA Charterholder and a Member of the Chartered Institute for Securities and Investment. Henry graduated from Edinburgh University in 2004 with a MA (Hons) degree in Economics and Geography.

Investment approach

  • Growth emphasis: Focusing on businesses that the manager believes can grow their profits and cash sustainably faster than the market and ultimately become large companies
  • Analysis: Combining a thematic/structural view of an industry in which a company operates with analysis of bottom-up company fundamentals. Quality of management, organic growth potential, pricing power and strength of the balance sheet are particularly important and there is an emphasis on meeting companies to facilitate idea generation
  • Valuation: Seeking attractively priced companies, where not all potential good news is reflected in the stock price and where there is upside risk to both valuations and analyst expectations for earnings
  • Construction: Construct and manage a portfolio that is diversified across market capitalisation and sectors to improve risk adjusted returns and limit stock specific risk
  • Monitoring: Daily monitoring of exposures and risk metrics.

Product Risk Warning

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. Investment in smaller companies may be riskier and less liquid than larger companies, which could mean that their share prices and therefore fund performance is more volatile. All rights in the FTSE Mid 250 Index (the “Index”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. The Royal London UK Mid Cap Growth Fund (the " Fund") has been developed solely by Royal London Asset Management. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Fund and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by Royal London Asset Management.

Video - RLAM's UK equity process