Article date: 25 May 2007
The Norwich UK Special Situations Fund, for which Schroders are appointed investment manager, celebrated its one year anniversary on 22 May 2007. In its first year the fund has achieved returns of 31.52% (compared to a sector average of 24.46%) placing it top quartile since launch*.
Harnessing the unique skills and expertise of two highly rated and high profile fund managers, Richard Buxton and Andy Brough, the fund takes an innovative "two heads are better than one" approach. The S&P AA-rated fund is a concentrated portfolio of high conviction stocks consisting of the best ideas from each manager. Stocks are selected and position sizes determined independently of index weightings.
Investments into the Norwich UK Special Situations Fund can be made through a direct investment, an ISA, ISA/PEP transfers, via the Norwich Union Portfolio investment bond, or offshore via Norwich Union International Premier Portfolio bond. The fund is available across all major platforms including Lifetime.
Neil Davies, director of marketing investments, said: "The Norwich Union Special Situations fund has really delivered for customers and demonstrates our achievement in broadening our range of funds with great success.
"Customers of the fund in this first year have enjoyed excellent returns. Richard and Andy are again showing that they are outstanding fund managers and we are excited to have them on board as the fund's reputation continues to grow."
Richard Buxton, co-manager of the Norwich UK Special Situations Fund, said: "Over the last year, the fund has benefited from our decision to back themes such as infrastructure spending & capital goods through stocks such as John Laing, Kier, Babcock, Charter and Laird. Other special situations picked out which have delivered handsomely include Alliance Boots, Reuters, JD Wetherspoon and Xstrata.
"We do not expect the type of returns from equities that we have seen over the last three years. The real investment opportunities are harder to find. The index-unconstrained approach has enabled us to capitalise on the best investment opportunities across a broad spectrum of companies in the fund's first year. This approach will help us to continue to achieve attractive returns for investors in the long term."
Ben Yearsley, investment manager of Hargreaves Lansdown, said: "When this fund launched we were keen to back it. It saw two of the top managers in the UK combining in one exciting fund, utilising some of their best ideas. They set out to identify undervalued companies with the prospect of increasing earnings and I'm pleased to report that, one year on, they have thrived. Performance has been excellent with both Andy Brough and Richard Buxton performing admirably."
*Past performance is not a guide to the future - the value of a fund and any income from it can go down as well as up and the investor may not get back what they put in. Specifically the fund invests in smaller companies and relatively small number of stocks which makes the fund higher risk.
Notes to editors
Press office contacts:
Emma Broadbent 01904 452525 Out of hours 07800 692935
Louise Soulsby 01904 452617 Out of hours 07800 699526
About Norwich Union
- Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
- Norwich Union is the UK's largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
- Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
- For information regarding offshore via Norwich Union International Premier Portfolio bond, please contact 0845 300 3899 or email firstname.lastname@example.org.
About the fund managers
The fund is managed by Andy Brough, manager of the Schroder UK Mid 250 fund, and Richard Buxton, manager of Schroder UK Alpha Plus fund.
About Schroders Plc
- Schroders is a global asset management company with £132.3 billion (E194.9 billion / $259.5 billion) under management as at 31 March 2007. Our clients include corporations, insurance companies, local and public authorities, charities, pension funds, high net worth individuals and retail investors.
- Our aim is to apply our specialist asset management skills in serving the needs of our clients worldwide and in delivering value to our shareholders. With one of the largest networks of offices of any dedicated asset management company and over 300 portfolio managers and analysts covering the world's investment markets, we offer our clients a comprehensive range of products and services.
- Further information about Schroders can be found at http://www.schroders.com/. Schroder Investment Management Ltd is authorised and regulated by the Financial Services Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.