Shell and HSBC are favourite ideas in £2.7bn Investec fund as gains lag wider market.
Old Mutual's Richard Watts has taken positions in student accommodation and closed life assurance companies as mid-cap managers continue to ride the housebuilding and construction boom.
UK dividend payments hit a new record high in Q2, with PLCs paying out a total of £25.3bn to investors, but slowing profit growth means full-year dividends are expected to drop year-on-year.
Some mid-cap managers are allocating nearly 40% of their funds to stocks outside the FTSE 250, leading to a dip in performance as the index rallied over the last six months.
Shares in online grocer Ocado have risen 30% this morning on news of a deal to provide fellow retailer Morrisons with an online delivery service.
Mark Martin, manager of the Neptune UK Mid Cap fund, explains why investors should expect M&A activity to return to markets, and which mid-cap companies could be prime targets for takeover.