Four potential investment stars of tomorrow

Published by on 18 April 2016.
Last updated on 18 April 2016


Four potential stars of tomorrow

Cost denotes the annual ongoing charges figure for the share class of the fund that is typically bought by retail investors via platforms. Financial Express (FE) risk scores show how risky each fund is in comparison with the FTSE 100 index of the UK’s leading companies, which has a risk rating of 100. Funds that are more volatile than the FTSE 100 have a score above 100 and vice versa, giving a reliable indication of relative risk.

Crux European Special Situations cost: 0.84% FE risk score: 78


The fund’s index-beating performance in both up and down markets is impressive. Trustnet data shows that the fund performed well when European markets plummeted in 2011 and when they rebounded in 2012. Rob Morgan, at Charles Stanley Direct, rates the fund’s manager, Richard Pease (pictured above), as a “notable rarity” in this regard.

Over a 25-year career Mr Pease has outperformed his benchmark by an average 0.41% a month, according to Tilney Bestinvest, which publishes data on career track records and identifies Mr Pease as one of today’s top 100 fund managers.

Ardevora UK Equity cost 1.16% FE risk score: 92



Jeremy Lang (pictured above) and William Pattisson co-founded Ardevora Asset Management at the start of 2010 and have all of their long-term savings in the Ardevora funds. “Managers who set off on their own and establish their own investment boutiques are often highly incentivised to perform well,” says Hargreaves Lansdown’s Heather Ferguson.

The UK mid-cap fund focuses on cyclical companies and tends to perform well when times are good; it generally does less well in falling markets.

Scottish Mortgage Investment Trust cost: 0.48% FE risk score: 134



Many good-quality active managers take a highly focused approach. Baillie Gifford’s James Anderson (pictured above) and Tom Slater, co-managers of Scottish Mortgage Investment Trust, take a highly selective long-term view of the prospects of companies and completely disregard the constituents of any benchmark or what their peers are holding.

The trust has an active share of 94%.“They’ve been highly successful in picking some winners from an early stage, such as Tencent Holdings,Tesla Motors and Facebook,” says Mr Morgan.

“The trust’s performance can behave completely differently to the wider market, but this means it can work well as part of a diverse portfolio.”

Kames Investment Grade Bond cost: 0.79% FE risk score: 20



This fund has outperformed the IA Sterling Corporate Bond peer group in every discrete period over the past five years,accordingtoTrustnet.Co-managed by Stephen Snowden and Euan McNeil (pictured above), it is holds an ‘elite’ rating from FundCalibre. 

“Both managers are really experienced and opinionated,” says FundCalibre’s Darius McDermott.“They make money by exploiting changes in the credit worthiness of companies in the global investment- grade market and changes in expectations of the path of interest rates. They also have the flexibility to react quickly to changing market conditions.”


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