Fear of consumer slowdown sees bearish stance on media and retail

With taxes rising in the UK, the Dublin-domiciled Old Mutual UK Select Smaller Companies fund is favouring stocks that will not be impacted by a consumer slowdown. The product, managed by Luke Kerr, has achieved strong results over the past three years - returning 52.1% to 31 August 2006 compared with the 19.5% of its benchmark the Hoare Govett Smaller Companies (ex ITs) index, according to Old Mutual. Kerr believes the fund will continue to perform well if he remains bearish on stocks related to the UK consumer such as media and retail companies. He says: "Unemployment, taxes and int...