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Franklin UK Mid Cap Inclusive - Class A - Income (GBP)

Sell:671.33p Buy:671.33p Change: 0.89p (0.13%)
Prices as at 22 October 2019
Change: 0.89p (0.13%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 22 October 2019
Change: 0.89p (0.13%)
Prices as at 22 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund features on our Wealth 50 list of what we believe are the best funds in each sector.

We think Paul's Spencer's an excellent investor in medium-sized companies. He's got bags of experience specialising in companies of this size and has a successful record investing in those with lots of growth potential. He also has the support of a strong UK equity team who we rate highly. We think this is a well-run fund in a sector with great prospects, which is why it's on the Wealth 50 list of our favourite funds.

Our view on the sector

Businesses listed on the FTSE 250 Index are often called medium-sized companies or ‘mid-caps’. While the FTSE 100 includes the UK’s 100 largest companies, the FTSE 250 contains the next 250 largest companies. They’re the main hunting ground for fund managers who run UK mid-cap funds. Medium-sized companies have made strong returns for long-term investors. But their performance tends to be sensitive to the health of the UK economy than larger ones. We think they’ve got the potential to deliver strong returns for long-term investors prepared to weather the increased volatility. They could add diversification to a portfolio focused on larger companies too.

Performance Analysis

The chart initially shows the performance of a UK smaller companies fund managed by Paul Spencer. He didn't run a fund between 1995 and 2006 but he continued to research small and mid-sized companies over this time, before returning to fund management. We've used the performance of the FTSE 250 index for the period he wasn't managing a fund. He then started running a fund focused on medium-sized companies.

Spencer's got an excellent track record. He's beaten the benchmark by a long way during his career. Our analysis puts this mainly down to his stock-picking skills. He's normally done better than the benchmark during both rising and falling markets, although there's no guarantee that'll continue in the future. There have been times when the fund hasn't done so well, such as around the time of the 2016 EU referendum.

Investment Philosophy

Spencer thinks the best investments are in high-quality companies with excellent long-term growth potential. He'll only invest in a company if he thinks its share price is lower than what this longer-term potential suggests it should be. He considers what could go wrong as well as right with a company.

Process and Portfolio Construction

The manager currently invests exclusively in mid-sized businesses listed on the FTSE 250 index. He also has the flexibility to invest in higher-risk smaller companies. He looks for ones that do something others struggle to do better, with well-known brands, capable management teams and healthy finances.

He normally invests in 30 to 40 companies, making this a fairly concentrated fund. This gives each one the opportunity to make a meaningful difference to performance, but it's a higher-risk approach.

If a company grows into a large one, Spencer will normally sell it and replace it with another mid-sized company with better growth prospects. He'll also usually sell a company quickly if it's run into trouble, rather than wait for it to potentially recover.

question mark Manager Track Record Based on HL Quantitative Research

  • Rensburg UK Smaller Companies
  • FTSE 250 Mid (X It) TR
  • Franklin UK Mid Cap A Inc
  • Rensburg UK Mid-Cap Growth
  • FTSE Small Cap CR
  • FTSE Small Cap TR
  • FTSE Small Cap (X It) TR
  • FTSE 250 Mid (X It) TR

Fund Track Record

21/10/14 to 21/10/15 21/10/15 to 21/10/16 21/10/16 to 21/10/17 21/10/17 to 21/10/18 21/10/18 to 21/10/19
Annual return 22.34% -1.67% 22.67% -4.38% 18.80%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Franklin Templeton was formed in 1992 when Wall Street firm Franklin joined forces with the global investment specialists Templeton. It is one of the world's largest asset management groups, headquartered in San Mateo, California, with offices across the globe. Franklin's strength lies in finding excellent value in US equities and bonds, whereas finding high quality equities at bargain values drives Templeton. In 2011 it completed the purchase of Rensburg Fund Management, which has enhanced Franklin Templeton's range of UK equity funds.

Information about the fund

Fund manager biography

manager photo
Manager Name: Richard Bullas
Manager start date: 2 September 2013
Manager located in: TBC

Richard Bullas is a portfolio manager at Franklin Templeton Fund Management. He is co-manager on the Franklin UK Smaller Companies Trust and manages the Smaller Companies portion of the Franklin UK Managers? Focus Fund. Richard has worked with the fund management team for over 12 years, joining Franklin Templeton Fund Management via the acquisition of Rensburg Fund Management in 2011. Mr. Bullas joined the team in 2000 as a Trainee Fund Manager, supporting the fund managers on a range of equity unit trusts while studying for his professional investment qualifications (IMC and Chartered MCSI). After 3 years he was appointed Assistant Fund Manager, assisting and reporting to the investment director, specifically on the management of the Franklin UK Smaller Companies Trust and the Franklin UK Manager?s Focus Fund. From 2006 he was made Fund Manager and Associate Director while at Rensburg, co-managing 2 UK Equity Mandates as well deputy fund manager on the Franklin UK Select Growth Trust and Franklin UK Manager?s Focus Fund. Mr. Bullas investment approach focuses heavily on individual company analysis, identifying quality undervalued companies that have the potential for long term outperformance. Richard has covered the UK smaller companies sector for 12 years and has considerable experience researching and analysing smaller companies. Prior to joining Rensburg Fund Management (now Franklin Templeton Fund Management) Mr. Bullas worked at AVIVA Plc as a Market Analyst in the life and pensions department. Prior to that he spent a short time working at a Chartered Accountants, for the Audit Team. Mr. Bullas holds a B.Sc. (Hons) degree in business and management studies from Bradford University School of Management, graduating in 1998. He holds the IMC (Investment Management Certificate) and is a Chartered MCSI (Chartered Institute for Securities and Investment).

manager photo
Manager Name: Mark Hall
Manager start date: 1 June 2013
Manager located in: Leeds

Mark Hall is a member of the highly-regarded Franklin UK Equity Team. He specialises in multi-cap UK equity analysis and investment and has been lead manager of the Franklin UK Select Growth Fund since 2001 and joint manager of the Franklin UK Managers' Focus Fund since its launch in 2006. Mark joined Franklin Templeton Investments when it acquired Rensburg Fund Management in January 2011. After training as an accountant, Mr. Hall joined BWD Rensburg in 1988 as a Smaller Companies investment analyst, subsequently managing private client discretionary portfolios. Mark became fund manager of the BWD Equity Growth Trust in 1997, investing in the UK All Companies Sector. In 2001 he became the lead manager of BWD Aggressive Growth Trust, (which was subsequently renamed Rensburg UK Select Growth Trust). In October 2011, the Rensburg unit trust range was merged into subfunds of the Franklin Templeton Funds OEIC and renamed to reflect the Franklin Templeton brand, they kept the same objective, managers and investment process. Under Mr. Halls tenure as manager, Franklin UK Select Growth Fund has held an OBSR Fund Rating for five consecutive years (as at 30 June 2011). Mr. Hall holds a B.A. (Hons) geography with additional economics from Exeter University. He also holds an Investment Management Certificate (IMC) and is a Fellow of the Securities Institute (FSI (Dip)).

manager photo
Manager Name: Paul Spencer
Manager start date: 1 February 2006
Manager located in: Leeds

Paul Spencer, Lead Manager of the Franklin UK Mid Cap Fund and joint manager of the Franklin UK Managers' Focus Fund. A member of the Franklin UK Equity Team, he specialises in UK mid-cap equity analysis and investment. Mr. Spencer joined Franklin Templeton Investments when it acquired Rensburg Fund Management (now Franklin Templeton Fund Management) in January 2011. Mr. Spencer started his investment career in 1987, when he joined BWD Rensburg, within the next 8 years Paul progressed through the ranks becoming head of research. In 1991, he assumed responsibility for the BWD UK Smaller Companies Trust, leaving in 1995 to join Granville Davies Limited as a director and Small and Mid Cap analyst. In 1999, Paul joined TD Waterhouse, where he was head of research, specialising in small and mid cap investment analysis. He returned to Rensburg in 2006 to manage the Rensburg UK Mid Cap Growth Trust (now Franklin UK Mid Cap Fund). During his tenure as fund manager of the Franklin UK Mid Cap Fund, Paul has received a number of awards for investment excellence, including the Moneywise Best UK All Companies Fund in 2008, 2009 and 2010, Money Observer Best UK Small/Mid Cap Fund 2009 and Best UK All Companies Fund over three years from Lipper in 2009. Mr. Spencer holds a B.A. (Hons) economics from Nottingham University. He is a Fellow of the Securities Institute (FSI).

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account