Threadneedle fund goes for big in-house gains

The fund, managed by Alex Lyle, is weighted almost exclusively towards equities, accounting for 96.95 per cent of its investment. It places almost equal weight on the UK and the US (31.84 and 28.62 per cent respectively) but also has a big eurozone stake at 15.25 per cent.

The in-house funds that make the cut are all on the lookout for capital growth in promising equities in developed markets. All top five holdings are Threadneedle funds that focus on UK, US or European blue-chip stocks.

The total expense ratio is 1.63 per cent, the AMC 1.25 per cent and the maximum initial charge 5.5 per cent. The minimum amount required to access the fund is £1,000, with additional investments of £500 also allowed. Monthly savings of £50 can also be made.

The M&G Managed Growth fund is also a fettered fund hoping to capture the upsides of global equities. However, it has lost 6.58 per cent in the past three years, making one of the worst-performing funds in the sector.

The fund is far bigger, at £1.05bn, but is currently placed 109th out of 110 funds in the IMA Flexible sector.

Randeep Somal has only been at the helm of the Managed Growth and Global Basics funds since 2013, having previously been deputy fund manager on both since 2010.

Its number one holding at 26.98 per cent (M&G Global Basics) concentrates on companies offering basic services, such as the US Postal Service, while the second biggest holding at 14.93 per cent (M&G Global Growth) looks further afield for global corporations showing the most promise, such as Google.

Its TER is 1.84 while the AMC is 1.50 per cent. Investors have to deposit a minimum of £500.

Adviser view

Ben Willis, head of research at Bristol-based Whitechurch Securities, said: “Credit must go to Mr Lyle for allocating virtually 100 per cent of the fund in equities and most of it in developed market equities.”