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UK mid-caps: why investors should pay more attention

Why invest in UK mid-caps? The simple answer is that – with the exception of the 2008 crisis – they have consistently outperformed the wider market over the past 15 years.

But why should this outperformance persist and why should investors pay more attention to UK mid-caps right now? I believe there are three key reasons: firstly, they provide exposure to the UK’s domestic recovery. Secondly, mid-cap companies are generally more flexible and better suited to uncertain times than large-caps. Thirdly, entrepreneurs/founding families, with their longer-term investment horizons, are more likely to still be involved in relatively small companies.

1.       Exposure to the domestic recovery

As witnessed by the recent strength of sterling against almost all currencies, the economic recovery in the UK is clearly now taking root. In his testimony to the Parliamentary Committee on 24 June, Mark Carney explained that the Bank of England now expects real earnings growth…continue reading.

Visit the Neptune UK Mid Cap Fund Page

Visit neptunebigideas.com for more market views and comment from Neptune.

Important Information.

This is not for Retail Clients. It is intended for Investment Professionals and is not for forward transmission.

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. A majority of the investments made by the Fund may be in securities of small and medium sized companies. Such securities may involve a higher degree of risk than would be the case for securities of larger companies. The Fund may have a high historic volatility rating and past performance is not a guide to future performance. The Fund may invest more than 35% in government and public securities in a number of jurisdictions. Neptune funds are not tied to replicating a benchmark and holdings can therefore vary from those in the index quoted. For this reason the comparison index should be used for reference only. References to specific securities are for illustrative purposes only.

Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. References to specific securities are for illustration purposes only and should not be taken as a recommendation to buy or sell these securities. Forecasts are not a reliable indicator of future performance. These are Neptune’s views and as such this communication is deemed to be impartial research. We do not undertake to advise you as to any change of our views. This is not a solicitation or an offer to buy or sell our funds. All information is given in good faith but without any warranty. Neptune does not give investment advice and only provides information on Neptune products. Neptune Investment Management Limited is authorised and regulated by the Financial Conduct Authority for investment business in the United Kingdom. FCA Registration Number: 416015. For further information, go to www.neptunefunds.com

 

 

This article was provided by Neptune Investment Management and does not necessarily reflect the views of Citywire

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