Fund picks: 100 Club favourites

This article is part of
Investment Adviser 100 Club - July 2016

Fund picks: 100 Club favourites

With the Investment Adviser 100 Club now in its fifth year, our features team asks a selection of multi-managers and fund selectors for their five favourite 100 Club members of 2016.

Nathan Sweeney, senior investment manager, Architas

■ Chelverton UK Equity Income

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This is a differentiated strategy that invests in small and medium-sized companies to derive its income. Managers David Horner and David Taylor look for steady companies with attractive cashflows, yielding at least 4 per cent and with the potential to grow dividends. Often these sorts of companies tend to be overlooked by other UK managers due to their size, or for earnings-based plays. The result is a conservatively managed, well diversified portfolio that is exposed to a range of areas, including commercial property, materials and financials.

■ Crux European Special Situations

Richard Pease’s style of management is currently in favour. A focus on quality companies with strong balance sheets is sensible in this lacklustre market. He builds a portfolio of about 60 companies with superior-quality growth in different sectors. Most of his ideas are identified by the numerous company meetings he has.

■ Fidelity Emerging Markets

This fund is one of our top picks in the emerging market space. Managed by Nick Price, who is an accountant by trade, the fund pursues a bottom-up approach with a strong focus on quality growth. It is a best-ideas portfolio that draws on the research of Fidelity’s regional emerging markets funds and the strong team aims to identify companies with the greatest potential for high and sustainable rates of return (currently primarily in the consumer sectors). The success of their approach is borne out by the fund’s excellent long-term track record.

■ JPMorgan Japan

This is a Japanese equity fund with a mid- and small-cap bias that tries to identify future growth companies with strong pricing power. The fund has a high active share and is looking for long-term winners.

■ L&G UK Property

This is an open-ended, bricks and mortar fund and is a core direct UK commercial property holding with a strong allocation outside London and the South East. At the time of writing, despite the difficulties faced by other funds in the sector, the fund is not currently suspended and has historically never done so, although it has the option to do so if the need arises. It has tended to hold a high proportion in cash and real estate investment trusts (Reits), which has helped it during times of extreme liquidity.

Paul Kim, multi-asset manager, Liontrust

■ Crux European Special Situations

Richard Pease and James Milne, plus a team of analysts, have managed this fund since launch in 2009. They are long-term investors who do not get caught up with short-term noise in the markets. They tend to look for strong companies that are major players in their respective industries, often with high barriers to entry. Their style has worked very well with excellent performance throughout the years.