2nd July 2015
Ahead of the British Grand Prix this weekend Andy Parsons, head of investment research and advisory services at The Share Centre, matches three of his best British fund picks with three British drivers…
Standard Life UK Equity Income Unconstrained
With a reputation that is enhancing as impressively as Lewis Hamilton’s driving style, Thomas Moore brings a young, strong, focussed and dynamic investment approach to this fund. The fund typically holds a concentrated portfolio of stocks, where the emphasis is on identifying companies able to provide a strong total return through a combination of dividend growth and capital growth.
Similar to the impressive Mercedes driver with his pit crew, Thomas draws upon the support and expertise of the Standard Life research team, to help maximise the opportunity whilst appreciating and being aware of the risks involved. Whilst there are a number of familiar top holdings, Moore ensures is able to search the depths of the FTSE and has the ability to ensure that the portfolio does not merely follow the herd. For investors seeking an alternative UK equity income offering, this fund may be a suitable choice.
CF Woodford Equity Income
Managed by one of the most well-known and respected fund managers of the last 25 years, with a style that has received many plaudits over time; similar to the steady, resilient and trusted driving style of Jenson Button; Neil Woodford’s fund has just passed its first anniversary. Despite the fund launching last year, Neil has built a strong legion of followers through a tried and tested investment approach.
He is iconic within the fund management industry, much in the same way that Jenson has built a loyal and devoted fan base over the years. Whilst the core of this portfolio is defensive and less susceptible to extreme market volatility, Neil has remained firmly of the belief that small and occasionally unlisted companies in the UK have the potential to be successful and is therefore prepared to also invest in these. Such companies will only constitute a very small part of the overall portfolio, however can be pivotal to the fund’s journey and can potentially add excitement and punch. For investors seeking a core UK dominated equity income investment then this fund may well be suitable.
CF Miton UK Value Opportunities
Young and fresh like Manor F1 driver Will Stevens, George Godber and Georgina Hamilton managers of the CF Miton UK Value Opportunities fund are already demonstrating the potential to be the stars of the future. Having launched in 2013, and with asset under management progressively growing, it won’t be long before this team will have earned the right to a higher starting place on the grid and on investor’s radar. With the investment objective being to achieve long-term capital growth, the fund will mainly invest in UK companies, which the investment manager considers to be undervalued by the market.
Given its short investment history, this team has already demonstrated a remarkable stock-picking ability and we believe they will continue in the same vein. This is one of the few funds that strive to adopt a deep value investment strategy. They select companies with strong balance sheets and a good cash flow – from across the market cap spectrum – although the majority of underlying investments will often come from mid-to-small-cap companies. For investors seeking a fund with the potential to offer rewarding growth opportunities, predominantly through UK exposure, this fund may well be a good choice.