View more on these topics

Schroders alpha fund mixes stock selection

Schroders has introduced the UK alpha plus fund, a unit trust which invests in a concentrated portfolio of between 20 and 40 UK stocks.

The fund aims to produce capital growth by adopting a mixture of top-down and bottom-up approaches to stock selection. The fund manager, Richard Buxton, will use top-down methods to identify which sectors will benefit from economic trends. He will then take a bottom-up approach, analysing companies at an individual level, to narrow his stock selection down to an initial portfolio of 30 stocks.

Buxton joined Schroders in September 2001 from Baring Asset Management, where he was head of UK equities. He has 17 years experience in fund management and was responsible for the Baring UK growth trust prior to joining Schroders.

Investors who are looking for a higher-risk UK fund with a high turnover of stocks may find this fund of interest. However, there are many funds operating the same investment strategy because the high returns that were possible in the early 1990s are no longer attainable.

Stockpicking has now become more focused on the merits of individual companies, not simply holding stocks within promising sectors, because the performance of two stocks within a sector can vary. This fund&#39s success relative to other funds will depend on the depth of research Schroders makes available to Buxton and whether he buys or sells stocks at the right time.

Recommended

HBOS confident on loan market share

HBOS says it is confident it will exceed its target of a 25 per cent share of net mortgage lending in the UK. But it admits an uncertain economy and depressed equity markets could lead to difficult trading conditions for its investment products&#39 business. Its interim results for 2002 will be announced on July 25.

Industry backlash over CML&#39s call for rate rise

The Council of Mortgage Lenders&#39 unprecedented call for the Bank of England to increase interest rates to stabilise the housing market has met with opposition from other sectors of the mortgage industry.The Building Societies&#39 Association, intermediaries and lenders believe the onus is on the market to take a sensible approach if it feels the market […]

Dual strategy to fight taxation

Don has asked for some advice about whether there is anything he can do to take advantage of his foreign domicile.He is employed by a US company and is based in the UK. However, about one-third of his work is carried out on the Continent, where his employer has no direct representation. There are certainly […]

Hunt quits Aifa to avert consultancy clash

Lord David Hunt is stepping down as Aifa chairman to prevent any conflict of interest as his City law firm sets up a financial consultancy.Hunt, who is a senior partner at Beachcroft Wansbroughs, has promoted the cause of independent financial advice in several House of Lords&#39 debates.The new consultancy Beachcroft Wansbroughs Consulting will be launched […]

Is this the endgame for the current mergers & acquisitions boom?

Last year, worldwide mergers and acquisitions (M&A) rose to an unprecedented $4.7tn, according to Thomson Reuters, a 41 per cent increase over 2014. Anthony Forcione, senior equity analyst at Loomis Sayles, an affiliate of Natixis Global Asset Management, looks at what’s been driving this particular wave of mergers. Click here to view full article: Loomis-Sayles

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment