Investec Diversified Growth fund tops 40%-85% Mixed Investment
According to data from Morningstar, the fund is the top-performer last week, returning 36.59 per cent over the three years to date, pushing its ranking to eight in the 122-strong Investment Management Association Mixed Investment 40 per cent to 85 per cent shares sector.
The portfolio, which carries a four-star rating from Morningstar, is managed by Philip Saunders and is restricted to Ucits funds and transferable securities.
According to the latest factsheet for the fund, six of its top 10 holdings are internal Investec funds, including a 12.9 per cent weighting in Investec Global Equity, 7.1 per cent in Investec UK Alpha, 4.8 per cent in Investec UK Special Situations and 3.4 per cent in Investec Smaller Companies.
With its emphasis on Ucits funds and big exposure to growth situations, it explains in part the manager’s outperformance compared with the worst-performing fund in the sector, the £21.5m Williams De Broe Assetmaster Balanced fund. This portfolio, which is run by a team led by Laurence Boyle, carries a one-star Morningstar rating and has returned 3.8 per cent over the past three years, compared with a sector return of 25.5 per cent, the data shows. This fund is allowed to invest in other funds, including structured products, which according to the fund’s allocation at the end of June, occupy 17.08 per cent of the overall portfolio.
A further 4.8 per cent is in defensive structured products.
Although it also has a skew to UK small-caps, with underlying funds such as the River & Mercantile UK Smaller Companies fund, at 8.12 per cent of the portfolio, it has far more in equities than the Investec fund, which also carries 20.6 per cent in bonds. The WDB portfolio tends to keep towards the higher end of the IMA sector parameters for equity weightings.
Juliet Schooling-Latter, head of research at London-based Chelsea Financial Services, said: “I’m not familiar with the WDB fund but it certainly looks like its charges are higher as its TER is 2.96 compared with 1.79 for the Investec fund.
“However, looking at the WDB Balanced fund my numbers show it outperforming the Investec fund - 10.23 per cent compared with 8.09 per cent - over the past year to 9 August.”