The past six months in European markets have been dominated by two factors: profit warnings in the more cyclical sectors and an aggressive derating of mid-cap growth stocks.
Mid-cap liquidity suffers most
Over the past year markets have paid more attention to reflationary policies in Asia than earnings improvements. As a result, companies that have been growing the fastest—sometimes irrespective of valuations—have performed the best.
Equity markets worldwide keep nudging record highs despite political anxieties - nuclear explosions in North Korea, Brexit implosions in Europe and Trump outbursts in the US.
MiFID II also a challenge
Concerned about Brexit and weaker pound
Helped by weaker sterling
Putting restaurants and retailers at risk
JPMorgan trusts leading the winners
For managers Service and Kerr
Julie Dean, fund manager at Sanditon Asset Management, takes a closer look at the performance of the banking sector in 2016.
Managers bullish on UK consumer
Filip Weintraub, manager of the recently launched Skagen Focus fund, has blamed the sell-off in global markets over the past few months for the portfolio's tough start.
Market expectations benign, says Wharrier
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.
Neptune UK Opportunities fund
F&C manager Michael Ulrich has quit the firm, with management of his UK equity funds passing to Tom Wilson.
Dan Nickols manager of the Old Mutual UK Smaller Companies fund, asks if UK smaller companies should realistically be trading at a discount to their large cap peers
Levels of liquidity in the UK mid and small-cap space are again under scrutiny following Schroders' decision to overhaul two funds to guard against the problem.
Neptune Investment Management's Mark Martin has overhauled the £66m UK Opportunities fund since taking over as lead manager, turning it into a higher conviction portfolio with fewer positions.
Neptune is replacing the outgoing manager of the £66m UK Opportunities fund with its head of UK equities Mark Martin as it continues to restructure its fund range.
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.
The sell-off in UK smaller companies has created a far more attractive hunting ground for income seekers than that offered by larger companies, according to Charles Montanaro.