First foreign foray for top UK fund

Ted Scott has taken his first ever non-UK equity position in the top performing F&C UK Growth & Income Fund by investing in out-of-favour Deutsche Post.

“I’m prepared to take a contrarian view and Deutsche Post came on my radar as there has been plenty of bad news factored into the price,” explained Scott, “yet the company has very strong cash flow and a capable management team.

“I believe there is plenty of room for an upward re-rating from these levels and since buying the stock the shares have lifted as the company has been identified as a potential candidate for private equity interest.” Elsewhere in the F&C UK Growth & Income, which currently holds the number one position in the IMA UK Equity Income Sector year to date (to 27 April), Scott has added a position in Tate & Lyle while trimming back his exposure to vocational learning services provider Carter & Carter and software firm Autonomy. The stellar performance this year – the fund has returned 8.85% compared to 4.98% from the FTSE All Share – was also boosted by a reduction in his exposure to banks in Q1, selling out of HSBC entirely and reducing his position in Barclays, while adding to oil giants BP and Shell. Since 03/02/2003 the Fund has returned 124%.