The £8.34m fund is placed seventh in the Investment Management Association’s Flexible Investment category, after it delivered three-year returns of 40.93 per cent, significantly higher than the peer group average of 28.53 per cent.
Launched in January 2003 and managed since the outset by Wayne Buttery, the portfolio offers a 12-month yield of 3.21 per cent.
The fund-of-funds unit trust is designed to deliver a combination of income and growth in the medium and long term, investing mostly in global equities, with some exposure to bonds, property and cash.
Its largest holding is the £4.03bn Newton Asian Income Fund, which is delivering year-to-date trailing returns of 10.66 per cent, followed by the £1.17bn Troy Trojan Income Fund, which is delivering year-to-date trailing returns of 15.49 per cent, with a 12 month yield of 4.31 per cent.
The portfolio, which is available with income or accumulation units, has a maximum annual management charge of 1.48 per cent and a maximum initial charge of 5 per cent. The fund’s total expense ratio is 1.95 per cent, while its minimum initial investment is £1000.
M&G’s £1.28bn Managed Growth Fund was among the more modest performers in the same peer group. Its three-year return of 14.59 per cent is 26.34 percentage points lower than the Margetts fund, and 13.94 percentage points lower than the average for its peers.
Co-manager Graham French has overseen the fund since 1996, while Randeep Somal came on board last May.
The 19-year-old portfolio has a 12-month yield of 0.25 per cent, and aims to achieve long-term capital growth by investing primarily in M&G’s own funds, in addition to collective investment schemes where the firm may not have the requisite expertise.
Its minimum initial investment is £500, followed by additional investments as low as £10.
The maximum initial charge is zero per cent, however it does have an exit charge of 4.5 per cent, an AMC of 1.50 per cent and a TER of 1.92 per cent.
| Margetts Opes Income Fund | M&G Managed Growth Fund |
| Top 5 Holdings | Top 5 Holdings |
| • Newton Asian Income Fund: 16.47% | • M&G Global Basics Fund: 35.40% |
| • Troy Trojan Income Fund: 14.98% | • M&G Global Growth Fund: 11.74% |
| • Polar Capital Emerging Markets Income Fund: 7.04% | • M&G Global Emerging Markets Fund: 9.71% |
| • Invesco Perpetual Global Equity Income Fund: 7.03% | • Red Fort Partnership: 8.83% |
| • Schroder Asian Income Fund: 6.88% | • M&G Asian Fund: 6.49% |
Adviser Says...
Mark Croxford, financial planner for London-based Plutus Wealth Management, said: “The Margetts fund clearly has some of the leading income funds within it, including the Newton Asian Income Fund and the Troy Trojan fund, which are both doing well. Therefore its reasonably good performance is attributable in the first instance to its asset allocation and then fund selection, with good gains being made through its Asian holdings.
“M&G has backed itself with a fund predominantly of its own funds, which concerns me as while it has strengths in some areas, it doesn’t across the whole range. The exit charge of 4.5 per cent also puts me off.
“Essentially what these funds are trying to do is similar to our work in building model portfolios, but I would rather have the freedom to choose from across the board and then buy the constituent funds myself rather than investing in the multi-manager option.”