The 2016 Olympics kick off tomorrow. Here, we take a light-hearted look at which funds and managers may compete in some of the most popular track and field events:
Wise Investments Evenlode Income – Hugh Yarrow and Ben Peters are well on their way to becoming the next 'Woodford'. They have a similar style with a solid investment strategy: quality companies and defensive positioning. Their potential has come to the fore recently as the fund was positioned particularly well for the Brexit outcome.
Rathbone Global Opportunities - James Thomson is a great fund manager who seems to somehow stay under the radar. He sticks to what he does best. For example, he rarely invests in emerging market stocks as he says he doesn't have the access to research or know the markets well. He learns from his mistakes and adapts accordingly, and this results in good, consistent returns for investors.
EdenTree Amity UK – Sue Round has managed this fund for nearly three decades, making it the longest established ethical fund in the UK. She invests for the long-term with a strong focus on medium and smaller companies. Responsible investing is a key factor in decision making, with any potential investment having to pass through a rigorous multi-factor screening process before going into the fund.
Woodford Equity Income - Neil Woodford is the most recognisable manager in the UK fund management space. His renowned ultra long-term investment approach has been tried and tested across a wide range of market conditions and has held up particularly well in tough markets.
Fidelity Enhanced Income – The enhanced income strategy (trading some of the potential capital growth of a stock, in return for additional income) reduces the total return of the fund, but also the volatility. And in its place, the fund produces an income well in excess of the market - consistently above 6%.
Invesco Perpetual Monthly Income Plus - This fund is Invesco's flagship fixed income product. The fund has a flexible mandate and is designed to offer investors broad exposure to the UK fixed income market and provide a high level of income. Unlike many of its sector peers, it can invest up to 20% in UK equities. The fund's flexible approach allows the fund managers to actively exploit opportunities in varying market conditions. It consistently yields above 5%.
F&C MM Navigator Distribution – This fund is run by one of the industry’s most experienced and talented teams. Rob Burdett and Gary Potter have worked together for twenty years now, honing their ability to find less well known funds and then blend these individual disciplines into a successful, diversified multi-manager, multi-asset portfolio.
M&G Episode Income - The team managing this multi-asset fund uses behavioural finance to invest against the herd rather than following it. Their edge is in understanding the emotional sources of volatility and they have two strong differentiating attributes: They constantly look for value created by investor irrationality and then take positions that reflect those views.
Sanlam FOUR Stable Global Return - By concentrating on the least volatile business models, this fund displays greater resilience during turbulent market conditions. The managers take the responsibility of protecting and growing assets very seriously and like companies with limited economic sensitivity. The tight-knit and highly experienced team members all bring a unique perspective to the table.
BlackRock Gold & General - Gold is a hedge against uncertainty and there is likely to be a lot of uncertainty in the coming months. The combination of an experienced manager, a well-resourced specialist team and an investment process that is well suited to unearthing value in precious metal stocks make this a good option for investors wanting gold and other precious metal equity exposure.
Church House Tenax Absolute Return Strategies - This multi-asset fund targets positive returns over rolling 12-month periods and cash +4% over rolling 3-year periods. A small “boutique” fund run by two very experienced managers, this is an extremely useful portfolio diversifier. It is one of the few in the sector that targets an absolute return from diversification and risk management alone. It does not short sell any securities or indices for downside protection.
Henderson UK Absolute Return - The managers look to identify stocks that will either exceed or fall short of analysts’ expectations, and construct a portfolio of both long (profit when price goes up) and short (profit when price goes down) positions. Unlike many of its sector peers, it has achieved its stated aim, which is to provide equity-like performance, but with one third the volatility.