Fund of the week: Picking stocks that can weather the weather

By Annunziata Rees-Mogg

published 6 December 2005

in Features

Bad weather, hurricanes and earthquakes have made 2005 a turbulent year for the insurance market.

Indeed, it is likely to be the most expensive year ever for claims relating to natural disasters.

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Historically, the fund has had about 80% of its investments in the US, with a bias towards small and mid-cap insurers. Foster is currently focusing on the UK, which now represents 23% of the fund recently buying Aviva at a "good price". But his original aim was to make money from stocks outside the UK, which "investors would otherwise not know about" or invest in. It's working: the fund is up 32% in the last 12 months, compared to 5.7% for the overall index and 6.1% for its fund category, according to Morningstar.com. In the US, Foster likes Progressive Corporation, a motor insurer, and Philadelphia Consolidates, which both have decent size stakes owned by the founding families.

Annunziata was a deputy editor at MoneyWeek, covering financial markets, politics, economics and comment pieces. She then went on to the Daily Telegraph as a lead writer where she wrote a column on young women’s financial issues. She was briefly a member of the European Parliament for the East Midlands region in the UK as part of the Conservative Party. Annunziata continues to write as a freelance journalist.