Free rein gives Standard Life Unconstrained fund the lead

The fund's investment team selects stocks without reference to index weight or size to try to take advantage of under researched stocks. As the fund is unconstrained it can make total returns from both capital and income.

The investment team focus on trend changes and consensus expectations, scrutinising factors that have an impact on price performance such as value, growth, and quality. They then undertake further research via fundamental analysis and company meetings.

Standard Life says given the unconstrained nature of the fund you must be willing to accept a relatively high degree of stock-specific risk. For example, the fund may not do so well over shorter periods and, made negative returns during 2007 and 2008. The fund's manager, Edward Legget, says he tries to pick stocks that will do well over a period of around 18 months and he is not concerned by short-term volatility. As such the fund might be better for investors who can hold it for at least three years.

Mr Legget has only managed the fund since 2008, however, Standard Life uses a strong team approach and investment method, while allowing the named manager some discretion. Fund research company Standard & Poor's says Mr Legget, who also runs Standard Life Investments UK Equity High Alpha Fund, has a contrarian style.

Full data and a PDF factsheet for Standard Life Investments UK Equity Unconstrained Fund is available here.

Source: Investors Chronicle, *Standard Life.

Performance figures as at 14 October 2010.

Top 10 Holdings (as at 31 August 2010)

Sector breakdown