The Isis UK Select investment trust, managed by Phil Doel, is changing its name and approach after receiving approval from shareholders last week.
Doel (pictured), who joined F&C in November 2005, took over the portfolio from Jamie Hooper, who left the company to join Axa Framlington.
Prior to joining F&C, Doel managed the DWS UK Opportunities fund. The strategy he used for this fund, and currently uses on F&C UK Opportunities, which he also manages, will be mirrored in UK Select.
The number of stocks held in the fund, which is now £76m in size, will be reduced from about 45 to 25. They will also become equally weighted.
The name of the fund will change to the F&C UK Select trust to reflect the merger between Isis and F&C.
“Stocks will be chosen from the whole market irrespective of indices and market cap,” Doel says. “We choose the positions we think are interesting and can make money. That is the process we ran for the past four years [on the DWS UK Opportunities fund].”
There will be four types of holding within the fund: backbone stocks that could be held “forever”, long-term investments that are held between two and three years, short-term investments held between 12 and 18 months, and trading ideas that are typically held from zero to six months.
“That is how we characterise the different holdings,” Doel explains.
Up to 5% of the positions can be non-equity. Debt instruments, preference shares or units of cash can be held if needed.
Doel says he expects the reduction in the number of holdings to be complete by the end of January 2007.