View the article online at http://citywire.co.uk/wealth-manager/article/a756208
Performance Review: why Duncan Lawrie is backing Barnett
by Elsa Buchanan on Jun 17, 2014 at 12:58
James Humphreys, head of research at Duncan Lawrie, said the team is sticking with Barnett’s fund, despite it suffering heavy redemptions over the last few months.
While the fund closed April with £7.8 billion of assets – a decline of £495 million from the amount recorded at the end of March – Humphreys remains confident of Barnett’s abilities.
‘Woodford’s departure was a loss, but Barnett is a very experienced manager. We’re happy the process remains the same and that he is very competent, although we are following Woodford closely,’ he said. ‘The fact that Woodford is negotiating with Invesco about direct sales confirms they are trying to avoid at all cost a lot of volatility in those stocks.’
He said his team had not made ‘dramatic’ changes recently to the private bank’s balanced portfolios, preferring to rebalance towards longer-term strategic positions.
A portfolio typically has 37% in UK equities through direct holdings, while actively managed funds are used for small and mid cap exposure.
Barnett’s fund sits alongside the Liontrust Macro Equity Income fund, managed by Citywire + rated duo Stephen Bailey and Jan Luthman, and the Artemis Income fund, run by A-rated Adrian Frost. Humphreys acknowledged that UK equities are not cheap but said any volatility over the summer could provide a buy opportunity.
A mix of vehicles, comprising the HSBC S&P 500 ETF and the Finlay Park American and Threadneedle American Select funds, make up his weighting to the US, the portfolio’s second largest at 13%. While this helped to drive returns last year, sterling’s strength against the dollar hampered recent performance.
Over 12 months, the model has returned 10.7%, outperforming the ARC Sterling Balanced Asset PCI, which was up 9.2%. Over three years, it has delivered 19.4%, versus the benchmark’s 14.2% rise.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the funds
- Invesco Perpetual Income Inc
- Liontrust Macro Equity Income Fund - Acc (R)
- Artemis Income R Inc
- Standard Life Inv European Equity Income Ret Inc
- Threadneedle American Select Inst Net Acc USD
- Aberdeen Asia Pacific Equity A Acc
- Newton Asian Income GBP Inc
- Jupiter Strategic Bond Acc
- M&G Strategic Corporate Bond A Inc
- PFS TwentyFour Dynamic Bond A Ret Acc
- Standard Life Inv Glo Abs Ret Strategies Inst Acc
- Ignis Absolute Ret Gov Bond GBP A Acc
Look up the investment trusts
Look up the fund managers
- Mark Barnett
- Neil Woodford
- Stephen Bailey
- Jan Luthman
- Adrian Frost
- Will James
- Hugh Young
- Jason Pidcock
- Ariel Bezalel
- Richard Woolnough
- Guy Stern