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Jan Luthman, Macro-Thematic: Incumbent v Challenger banks

We have added three new stocks to our Funds as part of a new investment theme. This latest macro theme to be implemented in our Funds has evolved from a little publicised aspect of the UK government’s mortgage guarantee scheme, due to come in to effect in January 2014.  The scheme will be available both to first time buyers and home movers, as well as home owners seeking to remortgage without moving. In our view, the terms of the mortgage guarantee scheme could open up significant opportunities for so-called ‘challenger’ banks to carve out rapidly growing niches within the retail mortgage market at the expense of larger incumbents.

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