Fund to watch: Old Mutual UK Smaller Companies

Daniel Nickols has established an impressive reputation at the helm of the Old Mutual UK Smaller Companies fund since taking over a decade ago. In fact, the portfolio has been one of the best performers over this period with a 314% return, according to Morningstar data to 4 August 2014.

The stated aim of the fund, which has around 115 stocks, is to provide capital growth from investing primarily in a portfolio of UK smaller companies with prominent holdings, including Restaurant Group, Ashtead Group and Innovation Group.

Industrials is currently the largest sector with a 36.2% share of assets under management, followed by 16.2% in consumer services, 14.3% in financials and 10.8% in technology. Other sectors, which are each worth less than 10%, include telecommunications, oil & gas and healthcare.

Nickols, who was appointed head of UK Mid & Small Cap Team in January 2009, was previously a small-cap fund manager with Gerrard Investment Funds and Albert E Sharp.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.