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100 Stocks and 10 managers for UK best ideas fund

Skandia has released the final line-up of the UK best-ideas fund, complete with an indication of the asset allocation based on a model portfolio.

The fund will comprise 100 stocks and feature the best 10 ideas of 10 UK managers.

Axa Framlington has two managers in the fund – George Luckraft and Roger Whiteoak, plus Schroders’ Richard Buxton, Jupiter’s Tony Nutt, Merrill Lynch’s Richard Plackett, Rathbones Carl Stick, Artemis’s Mark Tyndall, New Star’s Stephen Whittaker, Old Mutual’s Ashton Bradbury and Gartmore’s Ashley Willing.

Skandia says that initial portfolio modelling shows the fund is well diversified, with the managers all inhabiting different areas between small-cap, mid-cap, large-cap and growth and value stocks.

The model has 44 per cent in the FTSE 100, 35 per cent in the FTSE 250, 5.65 per cent in the FTSE small cap, 12 per cent on AIM and 2.9 per cent in cash.

Skandia says that, using modelling, the fund has 3.5 per cent in one stock, with the top 10 holdings comprising slightly more than 24 per cent. Managers will be able to invest up to 25 per cent in a single stock.

The company says that to ensure managers have sufficient conviction in all of their holdings, each must have a minimum holding of 5 per cent of their allocation in each stock they pick. Each manager can also move up to 20 per cent into cash.

The fund is an Oeic split into 10 segregated mandates, with an initial charge of 5 per cent and an annual management charge of 1.5 per cent.

Skandia chief executive Jamie MacLeod has set a target of £30m to £50m of funds under management in the first six months.

Talking about the fund launch, Tony Nutt says: “It is a good way of running money, in that it brings together a number of individuals that have a lot of experience and strong relative and absolute returns over a long period of time. It is genuinely something new in the UK market.”

Carl Stick says: “It takes Rathbones and myself to a new level and provides us with new challenges.”

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