Friends Provident has launched a UK special situations fund in response to the splitting of Fidelity’s special situations fund.
The new fund will replicate the geographical exposure of Fidelity’s original fund and is made up of three externally managed funds; Merrill Lynch UK special situations fund, M&G recovery fund and Artemis global growth fund.
The Merrill Lynch and M&G funds will each make up 42.5 per cent of the portfolio with Artemis making up the remaining 15 per cent.
The asset allocation will be rebalanced on a monthly basis and are run by Merrill Lynch’s Richard Plackett, M&G’s Tom Dobell and Artemis fund manager Peter Saacke.
The fund is in the UK All Companies sector with at least 80 per cent in UK company shares and the rest invested overseas.
Friends Provident manager of the fund strategy and selection group Marc Haynes says: “The recent turbulence in equity markets has acted as a reminder of the benefits of true stock picking capability and the need for diversification of assets. Our new fund achieves this by tapping into the investment expertise of three top class fund managers.”