Exeter Fund Managers has introduced its second Oeic - the hidden value portfolio.
The fund is a departure from the company's first Oeic, which invests in zero-dividend preference shares, as it invests in UK stocks. There will be a concentrated portfolio of between 30 and 40 stocks selected by using a blend of stockpicking techniques.
The investment managers are Geoff Miller and Andrew Hobson, who both work on Exeter's equity income fund, financial investment trust and equity growth & income investment trust. With the new fund, they will use top-down and bottom-up approaches to pick a combination of growth and values stocks from a range of sectors.
Benchmarks will not play a part in this fund but it is likely they will favour smaller companies with hidden potential. These may be companies such as smaller financials, property companies and outsourcing businesses.
This fund is following the recent trend towards riskier concentrated portfolios where the analysis of individual stocks takes precedence over geographical and sector weightings.
However, it is different to those like Royal & SunAlliance's UK prime fund as it looks at smaller companies that are doing well in difficult market conditions. It will also be managed less aggressively, with many of the stocks viewed as long-term bets.
According to Standard & Poor's, the Exeter equity income fund is ranked 49 out of 81 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to October 15, 2001.