Schroders' new UK active value fund is aimed at investors who are looking to broaden their exposure to the UK market.
The fund is a unit trust that benchmarks the Salomon Smith Barney broad market UK value index, which is made up of 475 companies that are currently thought to be undervalued by the market. Some of the companies include British Telecom, Unilever, Tesco, British Aerospace and Marconi. The index is updated every three months, removing the companies that are no longer undervalued and which have risen in value and adding new ones.
As the index is made up of a wide variety of different companies covering different sectors, this should spread the fund's risk.
According to Standard & Poor's the Schroder UK Index fund is ranked 110 out of 241 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to November 6, 2000.