Scottish Value Management is exploring the UK stockmarket with the introduction of the UK opportunities fund.
This Oeic aims to achieve capital growth by investing in medium and smaller-sized companies in the UK. It will contain 40 stocks and will be managed against two benchmark indices, the FTSE 250 ex Investment Trusts and the Smallcap ex Investment Trusts indices.
The fund will be managed by David Stevenson, who has built up a track record in managing UK portfolios since he joined SVM in 1993. He trained as a chartered accountant and dealt with smaller companies in corporate finance before moving into venture capital with Dunedin Asset Management.
Stevenson will take a bottom-up approach when picking stocks for the SVM fund. He will look for companies in the retail, leisure and gaming sectors, those in the construction industry and companies that provide outsourcing for other businesses. The stocks Stevenson chooses will have certain characteristics, such as healthy balance sheets, growth potential and strong cashflow.
The UK economy remains in better shape than many other European countries due to a high level of consumer confidence, but this has not prevented the stockmarket from sliding in recent weeks. However, this may enable the SVM fund to pick up bargains, particularly as medium and smaller sized companies are more affected by the domestic economy than larger companies which tend to operate globally despite their UK base.
According to Standard & Poors, the offshore SVM UK opportunities fund is ranked 7 out of 173 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to October 1, 2002.