Legal & General UK Alpha Trust tops the pile

Legal & General's UK Alpha Trust, managed by Richard Penny, was ranked the number one fund in the UK All Companies sector over three years to 31 March 2009.

Out of more than 300 funds, UK Alpha sat top of the pile over three years' cumulative performance. The fund, which identifies companies which have potential to return high alpha over an eighteen month or 2 year time-frame, has benefited from investments in diagnostics and healthcare stocks such as Tepnel Life Sciences Plc and Immuno Diagnostic Systems Holdings, as well as mining firms such as Allied Gold Limited through to online gaming software companies such as Playtech Ltd.

Commenting on the fund's performance, manager Richard Penny said: "I run the fund on a conviction and contrarian stock picking basis. This allows me to see the upside in stocks that perhaps others miss. To be a good stock picker you need to know the company inside out. As one of the UK's largest investment manager's we have excellent access to UK companies, which is certainly an advantage when picking out performing stocks. When building a portfolio I produce robust short lists of potential stocks. I then take the time to really get to know the management and the company before deciding if it's right to invest in the stock or not."

Legal & General's Sales Director Ben Waterhouse said: "As the UK Alpha Trust approaches its fourth anniversary, Richard Penny has clearly demonstrated that he is an exceptional stock picker. Richard's investment approach is ideally suited to the early stages of the economic recovery and we expect further demand from intermediaries for the UK Alpha Trust in 2009. We are very proud of the performance of the entire UK equity range.

"We have the same ‘best ideas' focus across other sectors and regions, which has contributed to our strong reputation as an active retail fund manager."

The UK Alpha Trust is in the first quartile over one and three years according to Trustnet UK All Companies sector analysis. The fund was launched in May 2005 and was previously the UK's top unit trust over one year (May 2007) in Morningstar performance ratings. Investment is available through Legal & General (Unit Trust Managers) Limited as a unit trust only. The minimum investment is £500, there is no maximum limit. Investment will also be available through all major IFA platforms.

The initial charge for retail investors is 5 per cent and the annual management charge is 1.5 per cent (deducted from income). There is no initial charge for institutional investors with a minimum £100,000 to invest and the annual management charge is 0.75 per cent.

The UK Alpha Trust pays a commission to advisers of 3 per cent of the sum invested plus 0.5 per cent trail (no commission payable on switches from existing Legal & General investments). No commission is payable for investments made into the Institutional unit class. IFAs, who require more information, should call the Legal & General investment broker desk on 0845 070 8684. Lines are open from 9 am to 5 pm Monday to Friday. We may record and monitor calls. Call charges will vary.