AXA Framlington UK Select Opportunities fund
For investors seeking a truly diversified multi cap UK fund Andy Parsons, head of investment research at The Share Centre, examines the AXA Framlington UK Select Opportunities fund.
"The AXA Framlington UK Select Opportunities fund offers investors diversification via a multi-cap approach. The fund manager, Nigel Thomas, tends to maintain one third of the portfolio in large companies from the FTSE100, however the main focus is medium-sized and smaller companies.
"Thomas has been at the helm of the fund since September 2002 and brings his vast experience of stock picking to the table. For this fund stocks are selected in several ways. Thomas is forward looking in his approach and seeks a mixture of opportunities from circumstances such as recovery, growth, value, consolidation or even a complete management change, the introduction of new products, or technological change.
"Also, the manager is a firm believer in meeting all prospective companies, as this assists him in determining whether or not the management have the ability to deliver business plans.
"The portfolio is diversified, typically holding around 80 stocks. There are no specific stock or sector constraints although exposure to any particular company is unlikely to exceed 3% of the fund.
"The fund currently has most exposure to the industrials, consumer services and oil and gas sectors. In terms of performance, Thomas has clearly proven over varying time periods and tough economic challenges that he has an ability to identify some of the very best investment opportunities.
"Over a five year cumulative period, the fund is currently ranked 15th out of 255, returning 34.88% compared to the sector average of 8.34%, whilst over a three year cumulative period, the fund is once again ranked first quartile at 15th out of 274. The fund has returns of 52.93% compared to the sector average of 28.87%. Year to date, it is currently second quartile with a return of 11.53%, outperforming the sector average of 10.98% by 0.55%."