The flagship Schroder UK Enterprise unit trust is to increase portfolio concentration and alter its ...
The flagship Schroder UK Enterprise unit trust is to increase portfolio concentration and alter its performance target.
This follows the appointment of Philip Hardy as manager of the trust, replacing Jim Cox who retired from the group on 1 October. Since then Hardy has been looking at how he will alter the portfolio.
The fund currently holds 47 stocks and Hardy is aiming to cut this to around 35 to 40 by the end of March next year.
The fund has also been given the objective of outperforming the FTSE All-Share index by 2%pa, net of fees over rolling three-year periods. Under Cox, UK Enterprise did not have a definitive objective. Hardy, who previously ran Schroder UK Equity, is also looking to reduce stock risk among the largest holdings in Enterprise.
He will have the option to hold a neutral or underweight position in the 10 largest All-Share stocks unless he has a highly negative view on them, something that Cox did not tend to do.
Hardy said: "In terms of differences with Jim Cox, I think I like to have a broader list of stocks that I am prepared to invest in. Jim tended to focus on the capital goods type sectors and did a superb job out of that. I want to have a more open list of stocks that I am prepared to buy.
"I am also prepared to invest in stocks today where the value is a long way out in the future, for example ARM. We are looking to have much more of a balance between growth stocks and value stocks."
New holdings which Hardy has introduced include Future Network which makes up 4.1% of the fund compared with less than 0.1% of the All-Share and ARM which makes up 3.68% of the fund compared with 0.23% of the market.
Schroder UK Enterprise has an frAA rating from Standard & Poor's Fund Research and is ranked 241 out of 274 funds over three months on a fall of 2.6%. The fund is 95 out of 256 funds over one year on growth of 12.2% and is 196 out of 222 over three years on growth of 28.5%. See page 20 for a full-page interview with Philip Hardy.
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