Moneywise First 50 Funds - 20 active funds to add value

Published by Moira O'Neill on 14 July 2016.
Last updated on 28 February 2018

20 active funds to add value

Active funds have the potential to perform better than index trackers, but there is the risk that the fund manager may make the wrong decision.

Many investors build a core of low-cost passive funds and then add active funds as ‘satellites’ around this to try to add value. See our 50 first funds for beginners homepage for links to the other 30 funds in the list.

UK stock market income

TB Evenlode Income B Inc or Acc
The fund aims to produce attractive, long-term total returns, with an emphasis on income. Its managers buy UK companies that can grow sustainably without needing to reinvest much capital back into the business each year to generate growth. There are fewer than 40 companies in the portfolio, but the managers argue that they believe in quality over quantity. 
OCF: 0.90%
ISIN – Inc: GB00BD0B7D55 
Acc: GB00BD0B7C4 MI

Chelverton UK Equity Income B Inc or Acc
By investing in predominantly medium-sized companies, it aims to deliver a high and growing quarterly dividend and the prospect of good, long-term capital growth. It has been  a standout performer over the long term, but can be more volatile than other equity income funds.
OCF: 0.89%
ISIN – Inc: GB00B1FD6467
Acc: GB00B1Y9J570

UK stock market growth

Merian UK Mid Cap R Inc or Acc
Its aim is to provide capital growth by investing primarily in a portfolio of medium-sized UK companies.
OCF: 0.85%
ISIN – Inc: GB00B8FC6L92
Acc: GB00B1XG9482

Marlborough UK Micro- Cap Growth Fund P Acc
Managed by Giles Hargreave and Guy Feld, it aims to provide a total return of capital and income in excess of that achieved by the FTSE Small Cap Index (excluding investment companies) over the medium to long term. Inc class is not available.
OCF: 0.80%
ISIN: GB00B8F8YX59

Liontrust Special Situations I Inc
An attractive offering for investors seeking an unconstrained UK equity fund, this fund has a distinct process looking for UK companies with a strong defendable business franchise. It invests in all sizes of companies in a relatively concentrated portfolio with low turnover. Acc class is not available.
OCF: 0.87%
ISIN: GB00B57H4F11

Global stock market

Fundsmith Equity I Inc or Acc
Managed by Terry Smith, it invests in equities on a global basis for the long term. It will not adopt short-term trading strategies.
OCF: 0.95%
ISIN – Inc: GB00B4MR8G82
Acc: GB00B41YBW71

Lindsell Train Global Equity B Inc
Managers  Nick Train and Michael Lindsell want to achieve long-term income and capital growth by constructing a concentrated portfolio of 20 to 35 ‘exceptional’ companies from around the world. Acc class is not available.
OCF: 0.75%
ISIN – Inc: IE00B3NS4D25

Artemis Global Income I Inc or Acc
The fund is better diversified than some global equity income funds, using its full global remit to exploit income opportunities. Its UK content is relatively low.
OCF: 0.81%
ISIN – Inc: GB00B5N99561
Acc: GB00B5ZX1M70

Specialist overseas shares

Fidelity American Special Situations W Acc
This fund’s manager Angel Agudo has a contrarian approach to investing, targeting companies suffering from specific problems that he believes will be resolved. It is trialling a new fee structure from April 2018 – a lower base fee and a new performance fee linked to success in beating the market. Inc class is not available.
OCF: 0.95%
ISIN: GB00B89ST706

Baillie Gifford Japanese Inc or Acc
Japan is a major developed market, and this is a sound choice for getting core Japanese equity exposure into your portfolio. The fund seeks to identify typically 50 to 60 companies with potential to grow over the long term. It is managed by a very experienced Japanese equities team and has a low ongoing charge, compared to rival funds.
OCF: 0.63%
ISIN - Inc: GB0006010945
Acc: GB0006011133

Man GLG Continental European Growth C Professional Acc
This fund aims to achieve above- average, long-term capital growth by investing in shares of companies listed on European stock exchanges. The manager invests in companies that enjoy a firm leadership position that gives them excellent prospects, plus companies that are emerging winners already enjoying clear competitive advantages. Inc class is not available.
OCF: 0.9%
ISIN: GB00B0119487

Stewart Investors Asia Pacific Leaders B Inc or Acc
Its goal is to achieve long-term capital growth from a portfolio of large and medium-sized companies in the Asia Pacific region (excluding Japan, but including Australasia).
OCF: 0.89% (Acc), 0.91% (Inc)
ISIN – Inc: GB00B57S0V20
Acc: GB0033874768

Fidelity Emerging Markets W Acc
Aiming to offer long-term capital growth, it invests mainly in company shares in countries experiencing rapid economic growth including those in Africa, the Indian sub-continent, Latin America, South East Asia, Europe, and the Middle East. Inc class is not available.
OCF: 0.98%
ISIN: GB00B9SMK778

Bonds

Fidelity MoneyBuilder Income Y Inc or Acc
This relatively conservatively managed, high-quality, investment- grade corporate bond portfolio aims to provide an attractive level of income. It predominantly invests in UK fixed-interest securities, with some exposure to other developed markets.
OCF: 0.56%
ISIN – Inc: GB00B3Z9PT62
Acc: GB00BBGBFM09

Jupiter Strategic Bond I Inc or Acc
A flexible ‘go-anywhere’ bond fund that aims for a high income and capital growth by seeking out the best fixed-income opportunities around the world.
OCF: 0.73%
ISIN – Inc: GB00B544HM32
Acc: GB00B4T6SD53

TwentyFour Dynamic Bond I Inc or Acc
By investing in a broad range of bonds and fixed-income assets, it aims to offer attractive income plus capital growth.
OCF: 0.77%
ISIN – Inc: GB00B57TXN82
Acc: GB00B5VRV677

Marlborough Global Bond P Inc or Acc
A very diversified portfolio of bonds from around the world, including the UK. A good way to diversify bond exposure. It has almost 50 holdings – more than most comparable funds.
OCF: 0.44%
ISIN – Inc: GB00B8H7D001
Acc: GB00B6ZDFJ91

Ethical and socially responsible investment

Royal London Sustainable World Trust C Inc or Acc
The aim of this fund is to invest in innovative companies with a positive impact on society. It also invests in companies showing leadership in environmental, social and governance (ESG) management. There tends to be a bias towards the US and developed markets because that is where the manager tends to find innovation and companies with the strongest ESG standards.
OCF: 0.77% 
ISIN – Inc: GB00B8GG6326 
Acc: GB00B882H241

Rathbone Ethical Bond
It has a higher income target than other bond funds and has a very good performance record. The fund excludes investments in companies that are involved with: mining, arms, gambling, pornography, animal testing, nuclear power, alcohol or tobacco. All its investments must have at least one positive environmental, social or corporate governance quality.
OCF: 0.68% 
ISIN – Inc: GB00B7FQJT36 
Acc: GB00B77DQT14

Property

Kames Property Income Inc or Acc
This is one of the few open- ended funds to focus on generating a high income as well as capital growth. It aims to have up to 80% of the portfolio invested in bricks and mortar commercial properties and 20% in property shares and cash. Unlike some property funds, it was able to remain open after the EU referendum when many investors tried to exit property funds.
OCF: 0.87%   
ISIN – Inc: GB00BK6MJF73 
Acc: GB00BK6MJD59

HOW TO TURN THE FIRST 50 FUNDS INTO A POTENT PORTFOLIO

When putting together a portfolio of funds, the easiest way to think about combining these is through the ‘core and satellite’ approach. This separates a portfolio of investments into two distinct segments: the first is a core of long-term, low-cost and highly diversified investments, while the other is a selection of more specialist satellite investments.

Moneywise has put together some simple portfolios, that will help you begin investing for income or for growth. You can view them here