Easy portfolios
If you are reading this article, it is likely that you are one of many Chelsea clients who invest in one of our portfolios, whether it be within an ISA or the pension wrapper.
We review these portfolios for each new edition of Viewpoint, and alterations are kept to a minimum. However, where it is felt that a fund needs replacing, a suitable fund will be chosen as a replacement, from the Chelsea Selection. Funds may be removed and portfolios altered between these times if a fund manager departs or the process changes, but we will keep you informed via these newsletters.
Our research team perform regular quantitative screens, which helps to identify funds for further analysis. It is not just strong performance that we look for, but consistency of performance is very important, along with various other metrics.
No fund is ever added to the Chelsea Selection without us first meeting the manager. We establish their process and identify their investment philosophy whilst checking that their portfolio is consistent with the philosophy. If you are paying for active management, that is what you should get. So, you won't find us adding index trackers to our Selection.
EasyISA portfolios
Within the EasyISA portfolios we have made changes within the Aggressive EasyISA:
Legg Mason Clearbridge US Aggressive replaces AXA Framlington American Growth and BlackRock European Dynamic replaces BlackRock Continental European.
We have witnessed a better performance from the BlackRock European Dynamic fund than that of its Continental European counterpart. We have always liked the European Dynamic fund, but it was soft closed up until very recently. We have also made the same change within the Balanced Growth EasySIPP portfolio.
Legg Mason has a higher volatility and has shown a better performance than the AXA Framlington fund with it beating the S&P sector. It replaces the American Growth fund in the Aggressive EasyISA, Balanced Growth EasySIPP and Aggressive EasySIPP.
Other changes within the EasySIPPs are as follows:
Balanced Growth EasySIPP
Somerset Emerging Markets Dividend replaces JPM Emerging Market Income.
The Somerset Emerging Markets Dividend fund is an income and growth fund, while JPM Emerging Markets Income targets a higher income.
Cautious EasySIPP
Fundsmith Equity replaces Rathbone Global Opportunities.
The Fundsmith Equity fund is a large-cap fund and slightly more defensive than the Rathbone Global Opportunities fund, making it more appropriate for the Cautious EasySIPP.
Aggressive EasySIPP
Baillie Gifford Japanese replaces GLG Japan CoreAlpha.
Both of these funds are Elite Rated with FundCalibre, however, following a number of meetings with the fund manager, we have a slight preference towards the Baillie Gifford fund. We, at Chelsea, also prefer smaller funds and believe that the GLG fund is either at or around capacity.
High Alpha EasySIPP
Neptune UK Mid Cap replaces Franklin UK Mid Cap and Legg Mason Clearbridge US Aggressive Growth replaces Miton US Opportunities.
Similar to the Baillie Gifford fund, we like the Neptune UK Mid Cap fund as it is slightly smaller than the Franklin counterpart.
We also think that the Legg Mason Clearbridge US Aggressive Growth fund will continue to outperform.
Switches on both ISAs and the Cofunds SIPP, via Chelsea FundStore, can be done on our website. For a reminder of how to do this click here.
Alternatively, you can make switches using our easy to complete a switch form or by contacting us in the office, either via email at info@chelseafs.co.uk or on 020 7384 7300.