Aberdeen Standard Investments (ASI) said on Wednesday it has launched a new fund “which seeks to harness the significant investment opportunities present within global mid-cap companies.”
The Aberdeen Standard SICAV I – Global Mid-Cap Equity Fund will be managed by Anjli Shah and Harry Nimmo from the firm’s smaller companies equity team.
“Investing in dedicated mid-cap companies is well established in the US and the UK, but to date there are only a handful of global funds that focus exclusively on this part of the market,” said Aberdeen Standard.
“The new fund will follow the same process as has been successfully applied by the team for over 20 years.
“Mid-caps make up 15% of all listed companies in each country and at an Index level, have significantly outperformed large cap peers over the long term.
“Mid-caps tend to be lower risk than small-caps, so may be attractive to investors who have concerns over small-cap risk and liquidity.”
The Aberdeen Standard smaller companies team is one of the largest in the market and is responsible for the management of UK Small, UK Mid, Euro Small & Global Small stocks with $7.9 billion of assets under management as at December 31, 2019.
Aberdeen Standard Investments (ASI) is a global asset manager with over 1,000 investment professionals managing £486.5 billion of assets worldwide.
Parent firm Standard Life Aberdeen plc is headquartered in Edinburgh and has around 1.2 million shareholders.
Nimmo said: “This new fund is the natural extension of the smaller companies franchise.
“Relative to large caps, mid-caps are under researched, creating opportunities for active managers like ourselves.
“We believe this new fund is genuinely unique and offers something different for investors.”
Shah said: “Investing in mid-caps gives investors access to a diverse group of companies, many of which are industry leaders in niche market segments.
“Mid-caps offer many of the same attributes of fast-growing small-caps, but with less volatile returns.
“That’s why we think investors should consider an allocation to the asset class as part of their wider investment portfolio.”