Investments  

GLG portfolio achieves long-term growth

GLG portfolio achieves long-term growth

With a high equity exposure concentrated in large caps and a fettered and diverse portfolio, the GLG Stockmarket Managed Fund has consistently outperformed its sector since the latter end of 2013, according to data.

The £159.8m portfolio has returned a good 42.64 per cent in the past three years, placing it 14th in the Investment Association’s Flexible Investment Share sector, according to Morningstar.

According to its latest factsheet, the objective of the portfolio is to provide capital growth over the long term.

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In order to achieve its objective, fund manager Ben Funnell invests principally in investment funds but may invest in exchange-traded funds, derivatives and other investments.

Mr Funnell has managed the fund since 2009, prior to which he was GLG’s chief equity strategist so he has an active management approach, with macro views influencing the portfolio positioning.

The portfolio has an 84 per cent equity allocation, with the UK its highest exposure, at 34.61 per cent, followed by the US at 18.81 per cent, and Japan at 9.82 per cent, according to its factsheet.

A fettered portfolio, its top holdings are the £157m GLG American Growth Fund at 18.46 per cent; the £317.4m GLG UK Select Fund at 18.39 per cent, and the £78.9m GLG UK Income Fund at 9.9 per cent.

It also has a 7 per cent exposure to bonds, through the GLG Strategic Bond Fund, and 4.83 per cent in alternatives, through the GLG Asian Equity Alternative Fund and the GLG Atlas Macro Fund.

The minimum investment is £1m, unless through a nominee account, and the ongoing charge is 1.68 per cent.

In the same IA sector, the Margetts Frontier Adventurous Fund returned 22.23 per cent in the past three years, placing it 97th in the sector, according to Morningstar, but has consistently underperformed its sector since its inception in April 2011.

The objective of the £10.93m portfolio is to provide long-term growth and income through an active investment strategy, according to its latest factsheet.

This includes investments within higher-risk and faster-growth economies, when considered appropriate, using an activity managed portfolio.

It has a 93.8 per cent equity allocation, and large cap bias, with a 31 per cent exposure to Asia Pacific, 24 per cent to emerging markets and 16.5 per cent in Europe.

The portfolio’s top holdings are the £8.3bn First State Asia Pacific Leaders Fund at 6.6 per cent, the £578m Schroder Asian Income Fund at 6.3 per cent, and the £2.14bn Aberdeen Asia Pacific Equity Fund at 6.25 per cent.

The minimum investment is £1,000 and the ongoing charge is a high 2.98 per cent.

GLG Stockmarket Managed Fund Margetts Frontier Adventurous Fund
TOP FIVE HOLDINGSTOP FIVE HOLDINGS
GLG American Growth 18.46%First State Asia Pacific Leaders Fund 6.62%
GLG UK Select Fund 18.39%Schroder Asian Income Fund 6.36%
GLG UK Income 9.9%Aberdeen Asia Pacific Equity Fund 6.31%
GLG Japan CoreAlpha Equity 9.8%Fidelity Emerging Markets Fund 6.25%
GLG Strategic Bond 7%Schroder Institutional Pacific 6.21%

ADVISER SAYS...

Paul Coffin, wealth manager at London-based Capital Financial Markets, said: “The GLG Managed has significantly outperformed the MGTS Fund over three years. However, it is interesting to look at the performance for the last 12 months, as this trend may be changing.