In an attempt to achieve returns with only moderate risk, the F&C MM Navigator Moderate has outperformed its sector, returning a decent 30.51 per cent in the past three years.
The £255.9m fund is managed by veteran duo Gary Potter and Rob Burdett, whose aim is to achieve reliable income and capital growth through investment in equities or units of regulated and unregulated collective investment schemes and/or closed ended funds, according to its latest factsheet.
Currently sitting at 15th in the Investment Management Association’s Mixed Investment 20-60 per cent share sector – the portfolio’s main exposure towards UK equities – at 32.8 per cent, and Global Fixed Interest, at 31 per cent. The remainder exposure is towards North American, European, Asia Pacific and Japanese equities as well as property and cash.
Its top holdings are the £1.1bn JOHCM Continental European, at 5.1 per cent; the £567m PFS TwentyFour Dynamic Bond, at 4.9 per cent, and the £2.8bn PFS Majedie UK Equity, at 4.5 per cent.
The minimum investment is £1,000 and the ongoing charge is a high 2.39 per cent.
In the same peer group, the CF Heartwood Cautious Multi-Asset Fund has aimed to deliver income and growth to drive total return through investment in a diversified range of global asset types, according to its latest factsheet.
However, the £479.2m portfolio has underperformed against other funds in the sector, returning 17.94 per cent over the past three years, placing it 98th.
Fund manager Michael Stanes has used the asset allocation to find the right long-term mix of assets to achieve a target return and tactical asset allocation to adjust the portfolio to suit shorter term market conditions. He also does not invest more than 60 per cent of the portfolio in equities.
The portfolio will invest no more than 60 per cent in equities, and its current largest asset allocation is in bonds, at 35 per cent, and equities, at 31 per cent.
Top holdings are the Treasury 1.25 per cent Gilt, at 5.8 per cent; the £8.5bn iShares S&P 500 UCITS ETF, at 5.8 per cent, and the £176.5m DB X=Trackers FTSE All Share, at 5 per cent.
The minimum investment is £5,000 and the ongoing charge is 1.72 per cent.
All data is calculated bid to bid, net income reinvested, according to Morningstar, as at 17 November.
ADVISER SAYS...
Juliet Schooling Latter, research director at London-based Chelsea Financial Services, said: “The F&C Navigator Fund is run by one of the industry’s most experienced and talented teams, and generally contains between 25-35 individual funds, balancing diversification and risk. Their ability to find less well-known funds and then blend them together makes this a very interesting option. One-year performance has trailed the peer group average, but the three-year numbers are strong: 24.9 per cent versus 21.5 per cent.
“The CF Heartwood Cautious Fund uses strategic asset allocation to find the right long-term mix of assets to achieve a target return and tactical asset allocation to adjust the portfolio to suit shorter term market conditions. The fund has struggled over three years versus the peer group: 16.4 per cent and 21.5 per cent respectively. One-year returns have not improved meaningfully: 0.9 per cent versus an average of 2.4 per cent.”
| F&C MM Navigator Moderate | CF Heartwood Cautious Multi-Asset Fund |
| TOP FIVE HOLDINGS | TOP FIVE HOLDINGS |
| JOHCM Continental European 5.1% | UK Treasury 1.25% Gilt 5.8% |
| PFS TwentyFour Dynamic Bond 4.9% | iShares S&P 500 UCITS ETF 5.8% |
| Majedie UK Equity 4.5% | DB X=Trackers FTSE All Share 5% |
| Majedie Tortoise 4.3% | Cash (£) 4.9% |
| Invesco Perpetual Tactical Bond 4.2% | UK Treasury Index-linked Gilt 4.3% |
