Skandia Investment Management is to launch its UK Strategic Best Ideas fund on 19 September.

The new fund will allow its 10 managers to go long or short on their respective 10 highest conviction stocks. It will also allow for net market exposure of 0 per cent to 100 per cent, and the 10 managers will not be allowed to gear their portfolios.

Skandia believes the fund has the opportunity to outperform traditional funds and, over a full market cycle, should have lower volatility than traditional UK equity funds.

The new fund builds on the Global Best Ideas and UK Best Ideas funds, which had combined assets under management of almost £680 million ($1.3 billion) as at 29 August 2007.

James Millard, SIML chief investment officer, said: “Recent stock market volatility has highlighted the importance of investment flexibility. In all market conditions, there are shares that are rising and falling, and UK Strategic Best Ideas gives world-class fund managers the opportunity to profit from both."

The line up is expected to include SVM founder Colin McLean, Artemis's John Wood, Resolution Cartesian's Andrew Kelly and Old Mutual's Ashton Bradbury. Mark Lyttleton of BlackRock MLIM and Mileen Rash of Henderson Global Investors are also expected to feature.