UK equity recovery fund 1st anniversary
Leading fund manager, Standard Life Investments this week (6 March 2010) celebrates the 1st anniversary of its UK Equity Recovery Fund which has returned 105.2% to investors since launch - beating the sector average by over 54.35%.
David Cumming, Head of UK Equities at Standard Life Investments manages the fund, backed by his award-winning UK Equities team2. He has positioned the fund specifically to enable investors to capitalise on the expected on-going recovery in market and economic conditions over the next few years, as we come out of one of the deepest recessions since the war.
David Cumming, Manager of the UK Equity Recovery Fund, said; "The Fund was launched so that investors could fully capitalise on the low stock valuations and the excessively negative market environment. Our timing was good, launching just a couple of days before the FTSE 100 hit its intra day low for the year of 3460.
"The Fund aims to provide capital growth over the longer term by investing in stocks we believe offer the best prospects for recovery over the medium to longer term. Since launch, our stock selection has led us to focus on companies in the real estate, travel and leisure, general retailers and industrial goods and services sectors. Conversely, we've remained under exposed to defensive stocks such as tobacco, pharmaceuticals, utilities and consumer staples.
GKN, the automobile parts manufacturer - the fund's largest overweight holding; electrical retailer DSG International and Barclays have all been strong contributors to the positive returns investors have enjoyed.
"We believe that despite the sharp recovery in 2009, UK Equities remain attractively priced both on an historical basis and compared to other asset classes. There still remains very significant value at the individual stock level which we expect to capitalise on, particularly as sentiment on economic recovery prospects remains excessively bearish.
"The market overall should remain well supported by its robust earnings momentum and strong financial position. Monetary policy is set to remain accommodative for some time, helping to stimulate activity in the housing market and retail sales. Further support will come from evidence of the global economic growth becoming self-sustaining and credit flowing more freely, allaying fears over the unwinding of policy support. I believe that our Focus on Change investment approach leaves us well positioned to take advantage of individual stock opportunities as they arise."
The fund, which is aimed at the more sophisticated investor willing to take on above average sector and stock risk, takes advantage of Standard Life Investments' experience and strong long term track record in managing UK Equity products.