Some mid-cap managers are allocating nearly 40% of their funds to stocks outside the FTSE 250, leading to a dip in performance as the index rallied over the last six months.
Exposure to the index amongst the most popular mid-cap funds varies considerably depending on provider, and is not usually disclosed on the funds’ factsheets. While some fund managers have nearly the entirety of their fund in the FTSE 250, others have large proportions in small-cap or blue-chip stocks, according to data compiled by Hargreaves Lansdown for Investment Week. Neptune’s £96m UK Mid Cap fund run by Mark Martin has only 63% in the benchmark index, with small-cap holdings making up around 25%. It is the best-performing mid-cap fund over three years, returning 91.6% compare...
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