Investment consultants have welcomed Majedie Investments' decision to expand its fund management business by setting up a specialist UK equity firm.

Alan Bartlett, director of research at Attica Asset Management, says: "The rise of specialist houses is good for investors as it gives them greater choice and although there is a huge domestic bias in the UK there has traditionally been a dearth of UK equity specialists." The new venture, to be called Majedie Asset Management, is being set up by five former members of Merrill Lynch Investment Managers' Alpha team. It is expected to start running money towards the end of the year.