Franklin UK Mid Cap W

Following a review of the funds in the UK Equity Income sector, we have removed the Franklin UK Mid Cap fund from our top-rated funds list.

  • 188.11p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 250.35p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.82%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.50%

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 22 January 2021, fund data last updated 04 June 2015

The fund invests in UK equities from the FTSE 250 ex investment trusts with the objective of outperforming this index over the medium to long term. Manager Paul Spencer uses a top-down view on companies and markets as a framework for bottom-up stock selection, in which he typically favours quality companies with attractive valuations and avoids those with unattractive risk/reward profiles. The portfolio is unconstrained and relatively focused at around 35-45 stocks.

Fund summary

Sector UK All Companies
Structure OEIC
Launched May, 2012
Size £1,085m
Yield 0.50%
Charging basis Income
Dividends paid 31 May, 30 Nov


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.82%


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Investment process

A broad top-down perspective on the outlook for economies and financial markets provides the framework for a bottom-up stock selection process. The investment universe is the FTSE 250 ex Investment Trusts - manager Paul Spencer has primary analytical responsibility for this section of the market, but works closely with his colleagues on the Franklin UK Equity Team. He favours companies with sustainable growth prospects, strong balance sheets and positive cash generation. Companies held by the fund will typically: 1. Operate in markets with secular growth; 2. Have scope for multiple expansion and a re-rating against the broader market; 3. Be able to provide positive earnings surprises and generate an upgrade in forecasts; 4. Have downside protection arising from rejected bids, cash balances or asset backing. Spencer actively screens out stocks which have weak balance sheets, are in sectors that are structurally challenged or whose management is believed to be unreliable. Once companies with attractive operating characteristics have been identified, they are valued using the team’s proprietary software.

Franklin Templeton announced that Paul Spencer, long-standing lead manager on the strategy and member of the UK equity team, will be retiring at the end of September 2020 following 14 years with the firm. Lead manager of the Franklin UK Smaller Companies fund, Richard Bullas, will become a co-PM on the fund from 31 January 2020 alongside Spencer, whilst taking on lead management responsibilities for the product on 30 June 2020. Following this, Spencer will relinquish his co-PM role for the fund and will remain on the team until 30 September 2020 in an advisory capacity only.

Manager research

Average monthly relative returns

  • 16/17 -0.43%
  • 17/18 0.37%
  • 18/19 0.15%
  • 19/20 0.76%
  • 20/21 -0.85%

Bestinvest MRI

  • 3 years 0.02%
  • 5 years 0.00%
  • Career 0.17%
  • 3 years 62.90%
  • 5 years 64.10%
  • Career 99.10%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Paul Spencer

Spencer is a member of the Franklin UK Equity team, specialising in UK small and mid-cap analysis and investment. He began his investment career in 1987 as an analyst at BWD Rensburg. He became its head of research and from 1991 to 1995 he was the fund manager of the BWD UK Smaller Companies Trust. He moved to Granville Davies as an analyst in 1995 and then to TD Waterhouse in 1999 where he was head of research. He rejoined Rensburg as a fund manager in 2006. He joined Franklin Templeton in 2011 when it acquired Rensburg. Spencer graduated from Nottingham University in 1986 with a BA (Hons) and is a Fellow of the Securities Institute.

Track record

Paul Spencer has 14.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.17%. During the worst period of relative performance (from December 2019 - September 2020) there was a decline of 10% relative to the index. The worst absolute loss has been 38%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -38.00% (May 2007 - October 2008)
Relative -10.00% (December 2019 - September 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.


Proportion (%)

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Top 10 holdings

Data accurate as at 31 July 2020

4.42% Serco Group Plc
4.14% Lancashire Hldgs
4.1% Grainger Plc Ord 5p
4.01% Spirent Communications
3.81% Spectris
3.59% Electrocomponents Plc
3.26% Derwent London Plc
3.21% Cranswick
3.2% Rotork
3.19% Howden Joinery Group Plc
Source: Trustnet

Sector breakdown

Industrials 38.00%
Financials 30.00%
Consumer Services 13.00%
Consumer Goods 11.00%
Technology 4.00%
Cash & Cash Equivalents 4.00%


35 to 45 stocks. Typical position sizes 1.5 to 5%.


Minimum 80% in FTSE 250 stocks.

Key Investor Information - Income


Key Investor Information - Accumulation