Scottish Widows Investment Partnership (Swip) plans to launch a high alpha UK fund when its new head...
Scottish Widows Investment Partnership (Swip) plans to launch a high alpha UK fund when its new head of UK equities, Robert Waugh, joins the group in October.
Targeted purely at intermediaries, the fund will not be marketed at Lloyds TSB bank customers due to its high-risk nature.
The portfolio will be modelled on the £8.7m Edinburgh Absolute Alpha fund, which Waugh managed at EFM from December 2002. It holds a concentrated portfolio of 25-35 stocks, aims to achieve absolute returns and can hold up to 100% cash.
Swip's UK Select Growth fund, managed by Ian Cormack, is currently its most aggressive UK equity offering, with a portfolio of 50-60 stocks. It also does not have the option to hold high cash weightings.
The group is also considering adding an element of capital protection on some of its retail funds.
Andy Frepp, marketing manager at Swip, said the protection would initially be offered on its UK Corporate Bond fund and one of the balanced portfolios.
Investors will be given a choice of 100% capital protection with limited upside to the fund's performance or both a floor on losses and a ceiling on growth. For example, any falls may have a safety net of 80% or 90% of the initial value, but any ceiling would also be restricted to 80% or 90% of the upside.
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