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Citywire Selection star picks: 10 more of our top rated funds
Here we highlight 10 more of Citywire Selection's 20 highest conviction funds which are available to UK investors. Click through the gallery to see our star picks and find out why they were chosen.
Veritas Global Equity Income
Charles Richardson and Andy Headley look for stocks on attractive valuations and strong revenue growth. Bottom up stock pickers the duo maintain a strong bias in Asia and remain underweight to North American companies. So far this year the main driver of absolute contribution has come from healthcare. High yielding pharmaceuticals remain an overweight position, looking to make the most of attractive valuations and high yield. The fund's long-term performance track record is excellent and continues to deliver a yield of greater than 4%.
Threadneedle UK Equity Income
Contrarian investors Leigh Harrison and Richard Colwell use the market weakness to top up on a number of resilient defensive stocks they believe exhibit steady growth potential. They favour consumer services and healthcare, which have been the main drivers of consistent performance in their portfolio, balancing that with the growth potential of the industrials sector. The managers have a steady outperformance record and should do well in market downturns as well as upturns. This is a good pick for the long-term investor.
This fund aims to keep the volatility low and deliver steadier returns than its peers through investment in global food and agricultural themes. The fund is tilted towards the rising population and income of the emerging world, focusing on the food supply chain. It has low overall volatility when compared to its pure equity peers, which makes it stand out.
JOHCM UK Opportunities
A disciplined approach to stock selection gives this fund one of the best risk-reward profiles in the sector. Managers John Wood and Ben Leyland are wary of the psychologically driven markets and maintain a defensive portfolio with a high level of cash. They look for sustainable growth, steering clear of financials in favour of businesses investing in capital expenditure and research development. A safe and consistent pick in the UK equity space.
iShares S&P 500
The North American market is far and away the toughest in which to find consistent outperformance. There are plenty of funds that will outperform for one year, or maybe two, but over a meaningful amount of time it is very challenging. The good news is that this ETF is among the cheapest and most liquid on the UK stock exchange and gives you direct access to the world’s largest economy.
First State Global Listed Infrastructure
Infrastructure companies have lagged slightly behind world equities in 2013. However this fund has still produced steady positive returns and is generating an income of nearly 3%. Infrastructure assets continue to have great allure in a world of low yields. Moreover, the signs are that inflation is returning after a brief hiatus and given infrastructure assets' inherent inflation protection, it will not just be their yield that is in demand. An assured defensive investment that is good for any long-term investment portfolio.
Ecclesiastical Amity International
Robin Hepworth tends to steer away from what the benchmark is doing and is underweight North America which he continues to find expensive. He prefers Asian companies which are a key overweight position within this ethical fund.
He sold gold, which had been one of his top holdings, in late 2012 which has proved rewarding this year. A long term investor, Hepworth remains cautious, but reduces his cash position when he spots low valuations.
Cazenove UK Smaller Companies
Paul Marriage’s ability to combine consistently high returns with low volatility has earned this fund its star pick status. The portfolio is split almost equally between midsize, small and AIM stocks, giving it a large tech overweight compared to the FTSE Small Cap index. Despite recent choppy markets, Marriage and co-manager John Warren remain confident the relatively abundant liquidity will continue to lift the smaller companies sector, and the fund’s excellent track record shows it continues to deliver.
AXA Framlington UK Select Opportunities
Nigel Thomas allocates most of the fund to large and midsize companies and is an excellent predictor of global investment trends. He has an overweight in industrials which is balanced through an underweight in financials, and consistent outperformance relative to the FTSE All Share is achieved with comparable volatility and drawdowns. We believe this industry heavyweight is a compelling choice to weather this year’s potential market storms.
Aberdeen World Equity
Stephen Docherty maintains a well-diversified portfolio with a quarter invested in the US and some exposure to emerging countries and Asia. Although a cautious investor he tends to veer away from the index, finding diversification through a mix of strong businesses with a global reach. The US underweight has hurt recent numbers but the fund has a low turnover and Docherty focuses on companies with robust growth for the long term. This gives the fund a steadier risk profile than many of its peers.