Merian UK Mid Cap Fund R GBP Acc

UK Growth

Rated Fund 2017-19. Takes a flexible approach through the economic cycle

Merian UK Mid Cap was renamed during 2018 to reflect the rebranding of Old Mutual Global Investors. The fund has grown in size to £3.3 billion under the successful stewardship of Richard Watts.

A “thoughtful investor”, according to Morningstar, Watts has run the fund since 2008 with a focus on medium-sized UK companies – often the frontrunners in the growth stakes. More recently, he has started to buy stakes in private, unlisted companies.

Barclays Wealth and Investments points out that the fund has endured a “really difficult time”, owing to its significant weighting in smaller companies, among the hardest hit in the recent stockmarket rout. However, its strong longer-term performance has been driven by high-growth names such as online fashion retailer Boohoo.

Watts believes a flexible style, encompassing a willingness to hold value and/or growth stocks, depending on the conditions and outlook, provides the greatest scope for sustained outperformance.

He and the rest of the UK small- and midcap equities team first look to identify sectors likely to outperform the overall economy. They study a wide range of economic and social indicators across the domestic and global scene. This allows Watts to set the overall balance of the portfolio: its defensive or cyclical positioning, for example.

When selecting companies to be included in the portfolio, Watts expects firms to meet at least one of three selection criteria: a likelihood that earnings will be revised upwards; re-rating potential; or sustained above-average earnings growth. Each week the team produces a screen of data for all companies in the mid-cap universe.

Meetings with company managements are an important part of the fund’s investment process. Watts and his team typically conduct around 300-400 meetings a year.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Merian UK Mid Cap Fund R GBP Acc
Manager
Merian Investment Management Limited
Type
Open Ended Investment Company
ISIN
GB00B1XG9482
Sector
UK All Companies
Launched
18/05/2012
OCF
0.85 %
Risk Rating
5
3 Year Sharpe
0.66
3 Year Alpha
2.19
Yield
1.5 %
Benchmark
FTSE 250 Ex Investment Trust TR GBP
To achieve capital growth. In seeking to achieve its investment objective the fund will aim to deliver a return, net of fees, greater than that of the FTSE 250 ex Investment Trust Index over rolling 3 year periods. The fund primarily invests in a portfolio of medium sized UK companies.
Holding %
Boohoo Group PLC 9.41 %
Ascential PLC 6.33 %
SSP Group PLC 5.09 %
Homeserve PLC 4.42 %
Ashtead Group PLC 4.32 %
Workspace Group PLC 3.88 %
Blue Prism Group PLC 3.83 %
Rentokil Initial PLC 3.62 %
Unlisted Equity 1 3.01 %
GVC Holdings PLC 2.95 %
Region %
United Kingdom 100.00 %
Sector %
Consumer Cyclical 37.05 %
Industrials 22.10 %
Financial Services 13.53 %
Real Estate 12.36 %
Technology 6.81 %
Name
Merian Investment Management Limited
Address
EC4P 4GG, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Richard Watts
Joined 12/31/2008

Richard joined the company in 2002 and manages the Merian UK Mid Cap Fund. He initially joined the UK mid- and small-cap team as an analyst before assuming full portfolio management responsibilities in 2009. He joined from Orbis Investment Advisory where he spent two years as an equity analyst, before which he was a senior associate in the investment management division of PriceWaterhouseCoopers. Richard has a degree in mathematical sciences from the University of Oxford, is IIMR qualified and is a CFA charterholder.

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.