Richard Plackett's UK Special Situations Fund record continues

BlackRock's Richard Plackett, manager of the BlackRock UK Special Situations Fund believes that the UK equity market currently contains a number of very attractive investment opportunities. These are found in internationally facing companies selling products abroad benefitting from a combination of improving global GDP and weak sterling. UK equities are looking attractively valued, both in relation to history, and to other asset classes such as gilts. The manager selects high quality international companies whose products are now even more competitive following the fall in sterling.

Global growth is likely to be driven by emerging markets. Around 70% of BlackRock's UK Special Situations Fund is invested in businesses which sell products into these fast growing developing markets. Examples include software producer of Aveva; industrial producer Spirax and equipment hire company Aggreko.

Richard Plackett, manager of the BlackRock UK Special Situations Fund, commented: "The economic outlook for the UK is not as positive as the global outlook and therefore the fund is weighted to companies which sell their products or services internationally. The UK faces significant structural change away from government spending and consumption, towards production. This is likely to be tough for companies heavily exposed to the UK. If structural change is to be successful it will require a relatively weak sterling."

The BlackRock UK Special Situations Fund has the flexibility to invest across the entire UK stock market, primarily investing in small and mid cap companies, but with the ability to hold larger company stocks if these present better investment opportunities.

Richard Plackett adds: "Shares in small and mid cap companies tend to display faster organic growth because of their immaturity. They are often in new industries or products which are innovative or niche - both of which are attractive to investors.

"As a fund manager I enjoy the flexibility of picking stocks from the mid and small cap areas of the stock market because there are a large number of companies to choose from. As takeover activity picks up small and mid caps will continue to be attractive to foreign buyers due to the weakness of sterling. This has benefitted the fund in recent months with agreed bids for Chloride and BSS group, both significant holdings in the fund."