FTSE 250

Fund performance skewed by benchmarks

Nigel Beidas, co-manager of the Marlborough Extra Income fund, takes a closer look at headwinds and tailwinds for UK companies.

It has been a volatile year for mid caps, with the FTSE 250 falling 6% between March and April. But F&C's £20m UK Mid-Cap fund has considerably outperformed over the past year, maintaining the return profile it has enjoyed over three and five years.

Markets may have been volatile as autumn approached, but the Smith & Williamson Enterprise fund has returned more than 3% over the three months to 3 November 2014, and beaten peers in the Targeted Absolute Return sector.

Lazard Asset Management's Stephen Russell has pointed to off-benchmark positions as a driver of returns for his EM Core Equity fund as a growing number of global stocks turn to the developing world for revenue growth.

Fund buyers seeking to move up the market-cap spectrum after a difficult year for smaller stocks say they are struggling to find funds that are overweight UK large caps.

Mid Caps

Balfour Beatty shares have plunged over 20% this morning, after the UK's biggest construction company issued another profit warning.

Majedie UK Income

Wealth managers report their clients are clamouring to take on more risk in portfolios, even as markets retreat from record highs.