Framlington has introduced the UK smaller companies fund, a unit trust that aims to provide capital growth.
The fund invests in a portfolio of between 80 and 100 stocks in the UK smaller companies sector. Although technology stocks will be considered, other stocks from other sectors such as aerospace and the media will also be selected.
The fund will be managed by Roger Whiteoak, who joined Framlington to head up the UK smaller companies team in December 2000. Whiteoak previously managed the Rathbone UK smaller companies fund, which was a top quartile performer when he managed it. According to Standard & Poor's, it was ranked 4 out of 63 funds based on £1,000 invested on a bid to bid basis over five years to December 1, 2000.
The UK smaller companies fund could suit investors who want a specialist and higher risk UK fund to add to their portfolio. Some investors may be attracted to this fund in spite of the recent dips in the stockmarket because undervalued stocks could provide value for money when the stockmarlet eventually picks up.
According to Standard & Poor's, the Framlington capital fund is ranked 29 out of 77 funds based on £1,000 on a bid to bid basis with net income reinvested over three years to March 16, 2001.