Eight funds offering exceptional value for money

Inflation remains persistently high, hitting 3% in January before dipping slightly to 2.8% in February. However, the Bank of England is still forecasting a peak of 3.7% later in the year, driven by rising costs for energy, water, broadband and council tax.

Over time, inflation erodes the value of your money, meaning your savings lose purchasing power unless they grow at a rate that matches or exceeds inflation. With the rising cost of living, everyone is looking to stretch their money a little bit further – after all, who doesn’t love a sale sign in their favourite store?

With this in mind, we’re delighted to be able to offer a number of funds at a cheaper share class, partly because of the professional relationship between the VT Chelsea Managed fund range and many asset managers – this also includes making funds available on platforms that otherwise wouldn’t be made available.

Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and the ISA and tax rules can change. Chelsea does not offer advice and so you must manage your ISA yourself.

Eight affordable funds for your portfolio

WS Raynar UK Smaller Companies, 0.82% OCF

Launched in July 2024, this fund is managed by Raynar’s founder Philip Rodrigs. Philip looks for high-quality, small-cap companies with strong management, clear growth catalysts and attractive valuations, resulting in a high-conviction portfolio of 70-90 stocks. His experience and in-depth knowledge of this area of the market has translated into strong performance since launch. Philips’ ability to react quickly to market news and take advantage of opportunities where other managers are cautious, has certainly contributed to the success of the fund.

T. Rowe Price Global Select Equity, 0.44% OCF

This is a global, unconstrained, high-conviction fund headed up by an experienced fund manager, Peter Bates, who has access to a large team of analysts to assist him in scouring the globe for the best opportunities, which currently includes the likes of Amazon, Microsoft and Eli Lilly**. The fund has a strong risk management framework, a clear investment strategy and a dynamic approach to stock selection, resulting in a portfolio of 30-50 equities. This fund is offered at a discounted share class to Chelsea investors, with the standard OCF being 0.76%.

Pinnacle Global Equity Select, 0.75% OCF

This is a core global equity fund managed by a very experienced team that has an excellent long-term track record of delivering outperformance. They are excellent stock pickers, with a team-based approach to decision making, and have generated alpha across all stages of their distinctive Corporate Life Cycle lens. The portfolio is concentrated, with typically 25-45 stocks from across a diversified range of sectors and regions. This fund is offered at a discounted share class to Chelsea investors, with the standard OCF being 0.95%.

Artemis Corporate Bond, 0.35% OCF

Manager Stephen Snowden brings a wealth of experience in investment grade fixed interest, having run several bond funds since he began his career in 1994. He takes a long-term, strategic and thematic view with this fund, combining his knowledge and understanding of the macroeconomic backdrop with his credit analysis and technical understanding of the bond market. He will also take advantage of short-term opportunities if and when they present themselves. He and his team have a strong process and a very good track record, outperforming the IA Corporate Bond sector by almost 14% since taking over the fund in 2019***.

IFSL Evenlode Global Income, 0.55% OCF

Launched in 2017, this fund is run by Ben Peters and Chris Elliott, and aims to emulate the success of the Evenlode Income fund, while benefiting from a wider global remit. The fund has a very clear philosophy and process, with the managers seeking quality companies with a sustainable competitive advantage. They believe the market fundamentally underestimates the value of high-quality businesses because of its obsession with short-term events. They target long-term dividend growth and are not afraid to be radically different from their benchmark. For example, the fund’s largest geographical allocation is currently Europe at 40.5%, compared with 20.6% for the sector**. The portfolio is concentrated, with around 35-40 holdings. This fund is offered at a discounted share class to Chelsea investors, with the standard OCF being 0.85%.

T. Rowe Price Global Focused Growth Equity, 0.61% OCF

This fund invests in a diversified selection of global companies which may be based anywhere in the world, including emerging markets. Lead manager David Eiswert focuses on growing companies that will be the leaders of tomorrow. He has a ‘go anywhere’ approach but typically finds these ideas in technology companies, and often in the US. The fund currently has 30% of the portfolio in technology with roughly two-thirds of the fund allocated to the US**. The T. Rowe Price approach has a huge analyst team for generating ideas for David to pick from, and this strength in depth really allows David to capture these best opportunities from around the globe. This fund is offered at a discounted share class to Chelsea investors, with the standard OCF being 0.76%.

TM Redwheel Global Equity Income, 0.60% OCF

This is a relatively new fund, launched at the end of 2020, but it is headed up by a highly experienced team, who all worked together previously on the BNY Mellon Global Income fund. The managers’ philosophy is to ‘buy the controversy and sell the consensus’, resulting in a diversified fund which could be materially underweight a number of sectors if the managers deem them unattractive. Each stock, of which there are between 40-60 in the portfolio, must yield at least 25% more than the broader market at the point of purchase. This fund is offered at a discounted share class to Chelsea investors, with the standard OCF being 0.70%.

Montanaro UK Income, 0.52% OCF

Montanaro is a small-cap specialist fund management company, with a large and experienced team of fund managers and in-house analysts and researchers, finding opportunities which others often miss, translating into excellent long-term track records on their funds. The Montanaro UK Income fund is no exception. The fund managers look for quality small and medium-sized companies, with an attractive dividend yield or the potential for dividend growth, and which are backed by strong management teams. This fund is offered at a discounted ‘Seed’ share class to Chelsea investors, with the standard share-class OCF being 0.80%.

*Source: Mind Tools, 1 April 2021
**Source: fund factsheet, 31 January 2025
***Source: FE Analytics, total returns in pounds sterling, 30 October 2019 to 34 March 2025

Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The views expressed are those of the author and fund managers and do not constitute financial advice.