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Royal Skandia introduces UK equity fund

Royal Skandia, the Isle of Man based offshore arm of Skandia Life, has introduced the UK equity fund.



UK equity is a life fund consisting of two portfolios. The first is actively managed by Mercury Asset Management, which will invest in UK stocks and shares. The second is the FTSE allshare index fund run by Gartmore Investment Management. Investments into the product can be made in US dollars, Sterling or Hong Kong dollars.



Royal Skandia will assess the actively managed half of the fund once a month to ensure that it is achieving sufficient performance. In the event that it fails to perform, the company will replace it with a more successful fund run by another outside fund manager.



The watchdog effect provided by Royal Skandia is not unique but should prove reassuring to clients who are concerned about the possibility of the actively managed part performing badly. There is also a potential pitfall with tracker funds and that is they also track indices down. But the FTSE allshare index has been stable for some time and this should not be too much of a problem.



The Skandia Gartmore UK income fund is ranked 3 out of 52 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to July 31, 2000.

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