Axa's Thomas ups mid-cap weighting in UK Select Opps

Axa Framlington's Nigel Thomas has boosted mid-cap exposure in his £1.6bn UK Select Opportunities fund on expectations of superior growth prospects for the FTSE 250 this year.

He says growth stocks will command a premium in the stagflationary environment he forecasts for the UK, while increased M&A activity will also help mid caps. Thomas says: "I wanted a bit more growth in the portfolio. Also, there is M&A in the FTSE 250 and a lot more to come through. Businesses that cannot grow through their own endeavours will grow through M&A." Mid caps now make up 40.7% of the fund from 35% in November. Blue chips have fallen from 51.2% to 45.8%, while his small cap weighting remains unchanged at 5.3%. One recent move Thomas has made is to trim Vodafone to buy mi...