It is always refreshing to see a fund management company admit there might be better people at managing money than itself. Norwich Union has done precisely that with the launch of its new UK special situations fund. It has outsourced the management of the fund to undoubted experts Richard Buxton and Andy Brough of Schroders.Buxton, as many of you will be aware, is the top-performing manager of the Schroder UK alpha plus fund and is known for his top-down views. Brough is the highly capable manager of the UK small and midcap funds and tends to have more of a bottom-up approach. Both are looking to invest primarily in undervalued companies, especially in sectors where demand for goods or services exceeds supply. They want the market to eventually realise the true value and push the share price higher. The portfolio is likely to consist of about 50 stocks, half in Buxton’s arena and half in Brough’s. Rather than the managers doing their own things, it will be a team affair, with a company being bought only if both are happy for it to be included. Is this the way forward for the fund management industry? If you look at the joint ventures over the last 12 months, for example, Britannic and the two funds that Norwich has launched, it definitely seems to be a viable option. These types of companies have distribution but not always fund management expertise so they could be marriages made in fund management heaven. I think the Norwich special situations fund could be a very interesting fund. The fact that Norwich Union is prepared to seed the fund with 200m speaks volumes. Do not be surprised if this is one of the top performers in years to come.