The AXA Framlington UK Smaller companies fund invests in companies that reside in the FTSE Smaller Companies Index. Managed by Henry Lowson, he follows a bottom up stock picking process to construct a portfolio of 70 – 90 stocks. Using a process called “growth at reasonable price”, he seeks companies with long sustainable earnings growth where he expects there to be positive earnings surprises. This is a more defensive UK Smaller companies fund relative to peers.
We like this fund as the team have been working together for a number of years and have one of the strongest reputations in the market. The manager’s mantra of “Lose the least when you get it wrong” is one that we find particularly valuable in the small cap space.