Funds Centre

Message Boards Property Pensions Savings Utilities UK Stocks Investments clear all debts then save or both? Split in assets... Gold Shares Liquidity or Solvency? GaBumping when is the best time to SPEND View boards: Your Money UK Stocks Also on Yahoo! Finance Mortgages Insurance Loans Credit Reports Credit Cards Banking Savings Cut Your Bills Mortgage articles What negative equity means for you Taxpayers' money may kick-start mortgage market What to do when you mortgage deal ends Can you trust a new build home? View archive Personal finance articles Is it too late to fix your energy bills? How to survive redundancy Dodge the soaring costs of a holiday Does it pay to grow your own? View archive Investment articles Forward defensive Is retail in need of therapy? What is the outlook for interest rates? Volatility guaranteed, if nothing else View archive

By Stuart Goodwin, Hargreaves Lansdown

Choosing what to buy is not always easy. In Lewis Carroll's 'Through the Looking Glass' Alice finds herself in a shop, but just as she sees something enticing it disappears. As an investor, you may find yourself with the same problem. Funds which specialise in a particular sector may force their way to the top of the performance tables, attracting your attention, but by that stage have you missed all the gains? As in Alice's experience, the prize may vanish just as you reach for it.

This newly launched fund could be a solution. The Norwich UK Special Situations Fund will invest throughout the UK market, with the decisions about which sector to invest in entrusted to a specialist. The fund is a joint venture between Norwich Union and Schroders. Schroders benefit from the vast resources of Norwich Union, who in turn get the expertise of one of the country's top investment teams. Indeed Norwich Union are so confident it will succeed that they are providing £200 million in seed money to give the fund immediate critical mass.

The fund plays to the respective strengths of its two managers: Andy Brough specialises in medium-sized and smaller companies, whereas Richard Buxton is noted for his knowledge of large companies. As a first-class economist, Richard Buxton will be responsible for balancing the fund. This will ultimately depend on where he sees the most promising opportunities and as such these will change over time.

Page break / Outlook for the fund

The managers are primarily looking to invest in companies that they think have been undervalued by the market, especially if they operate in sectors where demand for their goods or services exceeds supply, giving them significant scope to grow their earnings. Hopefully the market should realise their true value and push the share price higher. Both managers are highly regarded and their other funds have performed superbly, although past performance is not a guide to future returns and please remember that funds can fall in value as well as rise.

This is a new relatively focused fund for those who want professional managers to decide whether the current hot sector offers something more substantial than the grin of the Cheshire Cat. We believe that over the longer term investors looking for a top class UK growth fund should be well rewarded.

The Norwich UK Special Situations Fund is available through Hargreaves Lansdown with an initial saving of 5%. Investors can apply online with a debit card or download application forms or transfer forms from our website.

The Fund of the Month is written by Hargreaves Lansdown. An independent broker offering unit trust, stockbroking and other pension and investment services.

• More from Hargreaves Lansdown