Bestinvest says
So far this Best Ideas fund has performed well, fully utilising the UCITS 3 rules, and justifying the high charging structure. It is managed by a well regarded team of managers that have all been met individually by Bestinvest. It is a high conviction portfolio and in general we expect the fund to outperform traditional equity funds in falling or stable markets and lag a strong market. Volatility may be lower as well with managers able to adjust market exposure. The fund could be considered as a one stop shop for UK equity exposure or as a diversifyer within the context of a larger portfolio.
The Fund aims to provide long term total return through investment in predominantly UK securities.It invests in the ten best ideas of six managers from different investment houses, giving up to 60 stocks in total. Each manager is able to short up to 50% of his portfolio, or go long up to 100% dependent on market views. Managers are chosen for their expertise in different areas of the UK market and all have experience of hedge products. Whilst Skandia monitor individual manager performance and may change a manager at any time, they do not enforce a top down view of the economy, consequently any sector allocation is purely a function of the stock ideas. At about 2.5% the fund's TER is above market average.