Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Eight wealth managers' most recent fund buys

Geopolitical tensions, an ageing population and the need for a flexible approach are just some of the reasons our readers chose something new.

Tristan Dolphin

Senior associate at Stonehage Fleming, London


'Our most recent equity fund investment was in the Vulcan Value Equity fund in August last year. Vulcan’s differentiated approach to investing with a focus on quality and price appealed to us.

'To execute this well requires expertise and patience. Most peers will either pay a premium for a high growth business or sacrifice quality in order to buy a business cheaply. Vulcan’s disciplined framework and concentrated portfolio results in a selection of ideas across both the growth and value universes, while avoiding many of the pitfalls associated with single style strategies.

'While many in the industry focus on short-term outperformance, we invested following a period of underperformance. Our confidence to invest came after significant qualitative and quantitative analysis. This involved intensive due diligence and the use of a third-party analytics tool which allows transaction by transaction analysis, in order to distinguish skill from luck.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Tristan Dolphin

Senior associate at Stonehage Fleming, London


'Our most recent equity fund investment was in the Vulcan Value Equity fund in August last year. Vulcan’s differentiated approach to investing with a focus on quality and price appealed to us.

'To execute this well requires expertise and patience. Most peers will either pay a premium for a high growth business or sacrifice quality in order to buy a business cheaply. Vulcan’s disciplined framework and concentrated portfolio results in a selection of ideas across both the growth and value universes, while avoiding many of the pitfalls associated with single style strategies.

'While many in the industry focus on short-term outperformance, we invested following a period of underperformance. Our confidence to invest came after significant qualitative and quantitative analysis. This involved intensive due diligence and the use of a third-party analytics tool which allows transaction by transaction analysis, in order to distinguish skill from luck.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Tony Lawrence

Senior investment manager, Seven Investment Management, London

 

'Academics will show you plenty of evidence demonstrating the outsized returns to be expected from value investing, particularly in smaller companies. Since the financial crisis, however, this has largely gone missing, with large cap growth companies leading markets higher.

'History has shown us that this is unlikely to persist for too long and the unwinding of QE could finally provide the catalyst for value investing to outperform once more.  

'In Q4 we initiated a large position in the Polar Capital UK Value Opportunities fund across our multi manager range. This fund hunts up and down the market cap spectrum, focussing on companies trading at a discount to their intrinsic value. We would expect the fund to offer a degree of resilience in more challenging markets, as well as tapping directly into the opportunities that history has shown is due a comeback.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Ryan Hughes

Head of active portfolios, AJ Bell, London

'With the potential for increased volatility ahead, I’ve looked to diversify my UK equity exposure with an investment into the Troy Trojan Income fund. The fund seeks to outperform the FTSE All Share Index through a strong focus on capital preservation and long-term low turnover approach.

'Troy has a clearly defined investment philosophy running through the firm focusing on income growth and capital preservation by identifying high-quality companies that offer high returns on capital with durable competitive advantages.

'Very experienced manager Francis Brooke then looks to build a portfolio that comprises of 35-50 stock positions with a view to growing the dividend ahead of inflation. This approach has been proven in previous bear markets and is well placed to navigate through the next one, whenever it may come.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Ian Posgate

Assistant investment manager, EFG Harris Allday, Worcester


‘Like many brokers, we are concerned with the risks associated with income investments, given the poor performance of UK income equities and rising interest rates. 

‘We continue to invest in Residential Secure Income, however, believing the investment case remains strong. A growing and ageing population is placing increasing pressure on UK housing stock. House-building remains behind projected requirements and continued government funding shortfalls are unlikely to be reversed soon due to budgetary constraints. Consequently, house prices and rents continue to rise.

‘Though disappointed with the time it has taken the Reit to invest, we feel a 10% discount and a prospective inflation-linked dividend of 5% is exceedingly attractive, particularly as the fund still holds a significant cash position.

‘We believe market sentiment is currently driving the share price downwards, but we remain positive with the outlook for this sector and this Reit.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Vanshree Verma

Fund analyst, Deutsche Bank Wealth Management, London 


‘We recently added the Mirova Global Green Bond fund to our approved universe, which focuses on investments in green bonds that finance projects providing environmental benefits.

‘Responsible investing has been a key focus for us and this fund offers fixed income investors a solution to go one step further with impact investing.

‘Mirova, wholly owned by Natixis Asset Management, has almost 30 years of experience in socially responsible investing. The portfolio managers rely heavily on Mirova’s specialist teams, who not only analyse issuers and their securities on sustainability and green bond principles, but are also constantly engaged with the issuers to guide them into best practices. They also provide reports detailing the impact made via their investments, such as a reduction in CO2 emissions.

‘The fund should be well positioned to take advantage of the transition to a low carbon economy without compromising on performance.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Jonathan Moyes

Investment manager, Whitechurch Securities, Bristol

 

'In March, we added a position in Vanguard US government bond index with an unhedged share class, across a range of our portfolios. A key challenge we see at present is the ability to provide lower risk investors with a portfolio that can generate an attractive income, whilst preserving capital, whilst also avoiding some of the more expensive European “safe haven” assets.

'The Vanguard position ticks all of these boxes whilst also lowering to cost of our predominantly active based portfolios. In addition, our underweight towards US equities gives us an underweight towards the dollar, the unhedged position covers this at a time when the dollar is depressed.

'The yield is a significant uplift to the yield on a range of European fixed income assets, including Portuguese and Italian bonds, and much of the European high yield market. We feel this is an attractive contrarian opportunity.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Nathan Sweeney

Senior investment manager, Architas, London 


'We added the Pimco Global Bond fund to our multi-asset active portfolios in March, as we have been de-risking our fixed income exposure across portfolios by selling down our high yield bonds.

'There is undoubtedly a lot happening in markets, much of which is impacting fixed income investments, particularly the steady march to higher interest rates in the US. There are also rising geopolitical tensions, the prospect of global trade wars and higher market volatility generally.

'Pimco is experts in this field, so we looked to them to add a low-risk fund, which is focused on government bonds. The fund is managed by a team who have credible experience and resources to navigate the current difficult climate.

'With so much happening, we want a fund with a flexible approach, which can move the duration in response to events and provide protection in a risk-off environment.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Wayne Berry

Investment manager, Brewin Dolphin, London 

'The Baillie Gifford Japanese Smaller Companies fund invests in Japanese equities, with a particular emphasis on smaller companies. It invests in businesses that are attractively valued and offer good growth opportunities. The fund is managed by Praveen Kumar who sits within Baillie Gifford’s Japanese equity team. He works closely on this product with the global smaller companies “discovery” team.

'The fund targets companies which are growing their revenues and profit margins at a faster rate than the overall market. The manager is looking for businesses with powerful industry tailwinds, strong competitive positions,high-quality earnings and company management.

'The Japanese monetary policy framework has switched from setting short-term interest rates to targeting the shape of the yield curve, which has been successful at restraining bond yields. Prime minister Shinzo Abe won a majority at the recent snap election, cementing the current easy monetary policy for the foreseeable future. Equity valuations look relatively attractive and the structural reform agenda set out by Abe's government is already bringing about an improving corporate attitude.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

Wealth Manager on Twitter