Funds Centre |
|
By Mark Dampier, Head of Research, Hargreaves Lansdown The Schroder UK Alpha Plus Fund recently reached its fourth birthday. Throughout its life it has been skilfully nurtured by its manager, Richard Buxton, who we regard as one of the most knowledgeable fund managers in the UK. The fund has experienced a When choosing stocks for the portfolio Richard Buxton first takes an overview of the economic climate. Through looking at current market themes he identifies sectors with the potential to perform well, which gives him an idea of where the most promising companies might be found. Then follows detailed analysis of individual stocks to determine which seem most likely to deliver strong growth in their share price over the coming months. During this research process he can not only draw upon his own considerable experience and expertise, but also the resources of Schroders' large team of analysts. Another key aspect of the fund is that Richard Buxton does not follow a benchmark and simply tries to generate the best possible returns for his investors. If he has a negative opinion on a stock he will not buy it even if it makes a large part of an index. This means you can be sure that he is only investing in his best ideas. The portfolio Richard Buxton's highly selective strategy naturally leads to the fund holding a small number of stocks. At present there are only 30 holdings in the portfolio. The main characteristic of focused funds is that each individual stock has a large impact on performance, although some volatility along the way is inevitable. This is somewhat offset in this fund as it invests primarily in large companies, which tend to have less volatile share prices than their smaller counterparts. This approach is higher risk, but it also offers the potential to generate higher returns than a more broadly based fund. The market environment this summer has been turbulent. The fall can partly be explained by the market becoming concerned about the possibility of rising inflation and uncertainty over the direction of US interest rates. Richard Buxton's view on UK shares over the next twelve months is positive, but he expects to see further volatility in the short term. Far from being concerned about this volatility, however, he sees it as an opportunity and has been buying more of his favourite stocks on the market's weaker days. Richard Buxton is a shrewd judge of the UK market and we hold him in high esteem. In our opinion his skill as a fund manager will reward investors over the long term. If you have money to invest then we believe the Schroder UK Alpha Plus Fund could make an excellent choice. The Schroder UK Alpha Plus Fund is available through Hargreaves Lansdown with an initial saving of 5.25%. 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, pension and investment services. |
| ||||
|
Copyright © 2007 |