Standard Life Investments is launching a fund in November that will invest in FTSE 250 and UK smaller-cap companies under the stewardship of former Invesco Perpetual manager Mark Niznik.
The fund, which will be the first to be managed by investment director Niznik following his move to Standard in April, will invest in companies from the top end of the FTSE 250 scale to those with a market capitalisation as low as £10m.
The balance between smaller and mid-cap companies will initially be around 50-60 per cent but will depend on the relative merits of each sector at any given time to allow Niznik as much investment freedom as possible.
The fund will be comprised of around 80 stocks at launch but can rise to around 120. It will be aimed at investors who already own a core UK equity fund and is likely to slot into the UK all companies sector.
Investment director (mutual funds) Jacqueline Kerr says: “With our good reputation for UK equities and Mark's excellent pedigree – as well as the market recovery we expect to see by the end of the year – we believe the fund will prove a success.”
Chelsea Financial managing director Darius McDermott says: “Standard is well thought of and has a good track record in smaller companies. Mark Niznik is a decent manager and the fund looks fairly promising.”