OMGI expands remit of Watts' £1.8bn UK Mid Cap fund

Old Mutual Global Investors (OMGI) is to alter the investment objective of Richard Watts' UK Mid Cap fund to allow the manager to hold more in mid-cap stocks sitting outside the FTSE 250.

In a letter to investors, the fund house said it is to reduce the 80% which the fund must hold in medium-sized companies to 75%, and at the same time allow Watts (pictured) to invest in mid-cap stocks that do not qualify for the FTSE 250. As it stands, companies which are listed on AIM but qualify as mid-cap stocks, as well as those which have been promoted from the 250 to the FTSE 100 index, are defined as ‘non-benchmark’ holdings. OMGI said the latter restriction could end up making Watts a forced seller of stocks in the event they are promoted to the blue chip index. The mid c...