Axa UK Select Opportunities increases mid-cap weighting

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.

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. Thomas has recently trimmed Vodafone to buy mid-cap Spirent Communications, a...