Standard Life UK Equity Income Unconstrained fund

Andy Parsons, advice team manager at The Share Centre, explains why investors may wish to broaden their horizons and seek a UK fund away from the norm, such as the Standard Life UK Equity Income Unconstrained fund.

"Although this fund has a track record of less than five years and more importantly, has only been managed by Thomas Moore since January 2009, he has clearly demonstrated an ability to deliver as the fund has been a top quartile performer for 2009 and 2010.

"When a fund undergoes a change of manger, investors should be wary not to make any rash investment decisions. It takes time for the new manger to fully evaluate and structure the portfolio to their way of thinking and investment style. This fund has definitely benefitted from a fresh approach by Thomas.

"The portfolio is constructed from the very best ideas, drawing on the strength of Standard Life's investment research teams for large and small cap, their UK equity teams Winners List and Matrix quant model.

"Choosing which UK equity income fund to invest in is difficult for many investors for a variety of reasons. Many of the available funds have a strong correlation to each other given significant overlap in the top holdings because of the yields on offer.

"There is also a feeling of herd mentality as investors follow each other and are often attracted to the very largest companies. However, for those investors seeking diversification and a fund that has true versatility across the entire market cap spectrum, this fund may well be suitable.

"There will no doubt be a number of familiar top holdings, however the flexibility afforded Thomas ensures he is able to search the depths of the FTSE and has the ability to ensure this portfolio does not merely follow the herd.

"The strong performance seen by this fund in 2010 can be credited to key sectors such as Industrials, Non-Bank Financials and Consumer Facing Businesses. Examples of companies from these sectors were Aberdeen Asset Management, Restaurant Group, Tullet Prebon, Melrose and Tomkins."