UK Alpha Trust.

May 2005 saw the launch of our UK Alpha Trust; an actively managed fund that aims to provide the potential for long-term growth by investing in a concentrated portfolio of 35 to 50 companies listed in the UK.

Why Choose UK Alpha Trust?

• Aims to go above and beyond other funds in its category through a unique approach to stock selection.
• You can invest your money in a mix of companies that we believe are either currently undervalued for their prospects or show strong growth potential.
• A flexible investment approach that takes advantage of changes in the economic cycle.
• Potential for medium to long-term capital growth.
• Invest up to £11,280 tax-efficiently in an ISA or an unlimited amount in a unit trust.
• Minimum investment: £500 as a lump sum, or £50 a month.
• Initial fee discounted to 0% and no withdrawal fee.
• You can top-up your investment at any time.

What does 'Alpha' mean?

Alpha is the excess return of a fund relative to the return of its benchmark index. Put simply, it’s the value a fund manager adds through their expertise compared to the returns that could be expected from the index alone.

Charges

*as at 31 December 2011

Fund Performance

UK Alpha Trust has won numerous awards; including The Lipper Fund Award 2012 for best fund over 3 years in the Equity UK category,  2011 Moneywise UK All Companies Sector Award for consistent performance and value for money. 

Please remember that our past performance compared to other funds may not be repeated and is not a guide to the future.

Source: Lipper. The graph above shows the annual performance of the fund over five years, as at 31 December 2006. They take into account the annual management charge and extra expenses, and assume net income is reinvested.

 *Source Lipper: The table above shows the annual performance of the fund over five years as at 31 March 2012. They take into account the annual management charge and extra expenses, and assume net income is reinvested.

**Source: Lipper. Assumes an investment of £10,000 on 31 March 2007. The value shows cumulative growth for each year over a five year period and includes the initial investment. The figures take into account the annual management charge and extra expenses and assume net income is reinvested. 

Past performance is not a guide to future performance.

Concentrated Portfolio of 35 to 50 companies.

The UK Alpha Trust is a high-conviction fund, which means it only invests in a concentrated portfolio of 35 to 50 UK listed companies that the fund manager strongly believes in. We employ a rigorous risk-to-reward assessment of those companies, looking only to invest in attractively priced businesses.This gives us the potential to maximise growth and returns for investors over the investment period. 

The table below shows the sectors and industries where the UK Alpha Trust currently invests.

Our approach to stock selection. 

Our investment team’s stock-picking strategy is divided into two approaches: 'Deep value' and 'Strong growth'.

Deep value: looks at investing in companies that we believe are undervalued for their prospects. This could be companies that are well managed, have stable product lines and are profitable, but where demand for shares has fallen and the market has priced them at a discount. The fund team looks for indications that restore value such as new products, management changes, refinancing or restructuring that could increase profits over three years or less.

Strong growth: looks to invest in companies that show strong growth potential. These are companies which the fund team believe, through their experience, will match strong business fundamentals and a solid investment case over the long term, with above average growth.

Dual Pricing

UK Alpha Trust has two different prices, a price you buy at - the offer price, and a price you sell at - the bid price. The difference between the bid and offer prices is called the ‘spread’. This accounts for the cost of buying and selling the underlying assets. UK Alpha Trust invests in smaller companies, and therefore can have a wider spread than other equity funds because these shares are harder to buy and sell. The spread can change daily but is always kept within a maximum limit which, excluding initial charges was 3.73% as at 31 December 2011. Please read 'A Guide to Investing with Us' to find out more.

Before you apply

• You should always consider ISAs and unit trusts as medium to long-term investments, ideally of five years or more. 
• The value of your investment and any income from it may fall as well as rise.
• You may get back less than you invest.
• The fund invests in smaller companies, which tend to be riskier than large companies. This is because their shares can be harder to buy and sell. The value of them may go up and down more often than funds that invest in larger companies, and by larger amounts, particularly in the short term.
• Most funds spread investments across lots of individual holdings, rather than relying upon the performance of just a few. The whole of this fund, or a large part of it, invests in relatively few individual holdings. This means that a fall in the value of an individual holding can have a major impact on the overall performance of the fund.
• The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on individual circumstances.
• Each trust has its own individual risks. More details about the fund specific risks can be found in the 'Key Investor Information' document. More general information can be found in 'Additional Fund Information' and 'A Guide to Investing with Us'. Before you decide to invest you must read these documents.