Moneywise Fund Awards 2015: part 3


WINNER: Consistent Practical Investment


The Mixed Investment 40-85% Shares sector tends to suit more intrepid investors looking for exposure to multiple asset classes. In the case of these portfolios, stocks must account for between 40% and 85% of a fund’s assets. T

his year’s winner, which was last year’s runner-up, is Consistent Practical Investment. As its names suggests, the vehicle aims to deliver consistent long-term capital and income growth. “This is a fund that invests in a portfolio of investment trusts, investing across all asset classes but primarily in stockmarket-based investments,” says Haynes.

Taking second place is MFM Hathaway. “The fund looks for long-term growth with an emphasis on a decent immediate yield,” says Lowcock.

Haynes adds: “This fund provides exposure to a mix of UK shares and bonds with a benchmark 70/30 split. It has provided investors with strong, risk-adjusted returns and provides a good balanced proposition.”


WINNER: Schroder Global Healthcare Fund

HIGHLY COMMENDED: Henderson Global Growth Fund

The Global sector can be misleading, as while funds in the category must have at least 80% of their holdings in international stocks, many vehicles have particular industry biases. This year’s winner, the Schroder Global Healthcare fund, which has more than 60% of its assets in the pharmaceutical and biotechnology industries, is a case in point. Commenting on the vehicle, which also took the top spot last year, Lowcock says: “It has been a beneficiary of rising stock prices and merger and acquisition (M&A) activity, which has been going on in this space. As a result of its focus, the fund tends to invest primarily in the US and then Europe.”

In second place is Henderson Global Growth. Haynes says: “Fund manager Ian Warmerdam has generated strong returns from a focused portfolio of companies that have potential to generate sustainably high levels of growth. It has a remit to invest across the globe and has benefited from high exposure to US companies.”


WINNER: Aberdeen Global Emerging Markets Smaller Companies Fund

HIGHLY COMMENDED: Invesco Perpetual Global Emerging Markets Fund

There is no getting away from the fact that emerging markets have been enduring a torrid time, underperforming developed markets for a number of years. While these funds are for the more adventurous investor and should typically only take up a small part of a balanced portfolio, there are a number of top players in the sector.

This year’s winner is Aberdeen Global Emerging Markets Smaller Companies. Aberdeen remains one of the most respected emerging markets fund managers, and Connolly says: “Investing in a smaller companies fund is high risk, although it should be well positioned to benefit from the expected long-term upturn in domestic consumption in the emerging markets.”

Taking second place is Invesco Perpetual Global Emerging Markets. Lowcock says: “The fund has been heavily invested in financials and technology stocks and is well diversified, investing in small companies through to large.”


WINNER: Henderson Global Care UK Income Fund

HIGHLY COMMENDED: F&C Responsible UK Income Fund

The ethical investment sector has enjoyed some progress in recent years, bolstered by a change in sentiment towards the likes of climate change and human rights. Ethical investment research hub Eiris highlights that there are now almost 100 green and ethical funds available to UK investors, up from just a couple of dozen 10 years ago. FE Analytics this year launched its inaugural recommended ethical funds list.

From that selection, the 2015 ethical fund winner is the Henderson Global Care UK Income fund. Haynes says: “it focuses on companies that have positive ethical and environmental screening. Despite this leading to some restrictions on where it can invest, performance has been impressive both in terms of growth and income generated.”

Taking the highly commended slot is F&C Responsible UK Income. The group is one of the market leaders in the space, having launched the first ethical fund in Europe more than 30 years ago. Connolly says: “This fund benefits from a very experienced manager in Catherine Stanley and an established investment team, which produces consistent results.”

Read part 1 of our 2015 Fund Awards here.

Read part 2 of our 2015 Fund Awards here.

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