5 October 2020 – Following our recent investment committee meeting, a number of changes have been made to the Chelsea Core Selection, Chelsea Selection and EasyISAs.
More details can be found in the 50th edition of our Viewpoint magazine, which will be available on the homepage of our website next week.
Schroder Recovery has been removed from the Core Selection but remains on the Selection list. MI Chelverton UK Equity Growth has been promoted to the Core. MI Chelverton UK Equity Growth invests in small and medium-sized businesses. It has a comprehensive and disciplined screening process, which targets cash-generative companies capable of funding their own growth.
BlackRock European Dynamic has been removed from the Core Selection, as the lead manager is stepping down. It remains on the Selection list as the new lead manager has been co-managing the fund for almost 18 months and has impressed the Chelsea research team. He also has the backing of BlackRock’s very strong European equities team. Legg Mason IF Martin Currie European Unconstrained fund has been promoted to the Core Selection.
Man GLG Japan CoreAlpha has been removed from both the Core Selection and Selection. Baillie Gifford Japanese has been promoted instead.
Schroder Asian Alpha Plus has also been removed from both Core and Selection due to a change of fund manager. It has been replaced by T. Rowe Price Asian Opportunities Equity, which is a concentrated portfolio of high-quality, established companies with leading market positions and good management teams who prioritise shareholder returns.
Nomura Global Dynamic Bond fund has been promoted to the Core Selection. It is an unconstrained strategic bond fund, with a focus on total returns. Its manager blends two approaches when building his portfolio. First, he studies the state of the global economy and identifies which sectors and investment themes look most attractive. He then undertakes fundamental analysis, to populate his preferred areas with ideas.
Threadneedle UK Extended Alpha has been removed. BlackRock UK and newly-launched VT Downing Unique Opportunities have been added. The BlackRock fund invests in mostly large-cap companies that have a competitive advantage or are going through structural change. The Downing fund was launched earlier this year and is run by the highly-experienced Rosemary Banyard. She has a well-defined process looking for companies that have sustained competitive advantages, with low debt and good management teams.
ASI UK Income Unconstrained Equity has been removed.
Rathbone Ethical Bond has been added. It invests in investment grade bonds of reliable companies with solid business plans and stable management teams. Ethical exclusions are simple: no mining; arms; gambling; pornography; animal testing; nuclear power; alcohol or tobacco. All positions must also have at least one positive environmental, social or corporate governance quality.
Man GLG High Yield Opportunities has been added. Manager Mike Scott previously enjoyed considerable success managing the Schroder High Yield Opportunities fund. With this fund he has the added flexibility to short bonds - to also make money from falling prices. The fund is unconstrained and invests globally, although the main emphasis is on the UK, North America and Europe.
Smith & Williamson Enterprise has been removed.
Federated Hermes US SMID Equity has been removed. It has been replaced by Baillie Gifford American, which is run by a team of four co-managers who look for the high performance outliers and will hold them for the long term. These stocks will tap into the trends of the future, such as the continued rise of online retail, the evolution of transportation and innovative healthcare.
FSSA Japan Focus has been added. It is a high conviction fund investing predominantly in large and medium-sized Japanese companies, with a heavy emphasis on quality. It is managed by two experienced members of the highly successful FSSA Investment Managers team.
ASI Latin American Equity and Schroder Small Cap Discovery have both been removed. Aubrey Global Emerging Markets Opportunity has been added. This fund taps into the fast-growing consumer opportunity across the world’s emerging markets, investing in companies offering products and services to the upwardly mobile, ambitious and aspirational population centres which account for over 70% of the world’s growth.
Artemis Global Income has been removed.
Legg Mason IF Clearbridge Global Infrastructure Income has been added. It invests in global listed infrastructure companies from all over the world, including some emerging markets. Yield is important, but the focus is on total return, so income does not come at the expense of capital growth.
There are no changes to the Cautious Growth EasyISA or Income EasyISA.
Unless otherwise stated, funds have been removed due to disappointing performance.