UK Select Alpha Fund

Key Points

• Investment management responsibility for the fund is with John Husselbee of North Investment Partners since its launch on 8 December 2006
• Looking to provide consistent long term capital growth from the UK Equity market at reduced levels of volatility
• Active management accessing a full range of investment tools and products
• Objective offers investors consistent, positive returns in excess of LIBOR +2% over a three-year rolling period
• Sector: IMA UK All Companies

Current Views

September was characterised by a rapid and historically unprecedented series of government interventions in the market. Most notably of course being the US government’s ~£400B bailout package for the banking sector. In the UK events the failure of Bradford and Bingley, in turn causing a white knight in the form of Lloyds TSB, to attempt to rescue HBOS from collapse. Many investment professionals and media personalities blamed the sudden series of bank failures on the practice of ‘short selling’ and regulators on both sides of the Atlantic quickly took action to mitigate the risk that this practice posed to the markets. Its prohibition, though, failed to halt further declines.

Some relief for consumers arrived as the price of oil fell; crude dropped below $100 for the first time since April 2008. As the UK heads into the coming colder months there is hope that cheaper oil will translate into lower household heating costs.

As historical as these events have been so too is the opportunity in equities, which are undoubtedly undervalued by a market fuelled by reactionary fear. Accordingly, we believe that the equities markets currently offer good value for investors with a longer time horizon. Moreover, those who have seen the value of their portfolios shaken by recent events should be wary of falling prey to panic and the risk of cashing out at the bottom.

Asset Allocation