Moneywise First 50 Funds - 20 active funds to add value

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

CF Woodford Equity Income C Inc or Acc

Managed by the UK’s best known fund manager, Neil Woodford, this invests primarily in UK-listed companies. It aims to provide a reasonable level of income together with capital growth.

OCF: 0.75%
ISIN – Inc: GB00BLRZQ620
Acc: GB00BLRZQ737

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.

OCF: 0.89%
ISIN – Inc: GB00B1FD6467
Acc: GB00B1Y9J570

Evenlode Income B Inc or Acc

The fund aims to produce attractive long-term total returns, with an emphasis on income. Its managers aim to buy UK companies grow sustainably without needing to reinvest much capital back into the business each year. With less than 40 companies in the portfolio, the managers say they believe in quality over quantity.

OCF: 0.95%
ISIN – Inc: GB00B40Y5R17
Acc: GB00B40SMR25

UK stock market growth

Old Mutual 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.

OCF: 0.80%
ISIN: GB00B8F8YX59

Liontrust Special Situations I Inc

An attractive offering for those seeking an unconstrained UK equity fund, it looks for UK companies with a strong business franchise. It invests in firms of all sizes in a quite concentrated portfolio with low turnover.

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: 0.9%
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.

OCF: 0.77% (D Inc version available on Hargreaves Lansdown for 0.55% OCF)
ISIN – B Inc: IE00B3NS4D25
D Inc: IE00BJSPMJ28

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 and keeping its UK content relatively low.

OCF: 0.81%
ISIN – Inc: GB00B5N99561
Acc: GB00B5ZX1M70

Specialist overseas shares

Fidelity American Special Situations W Acc

Highly commended in the Moneywise Funds Awards 2016, this is one of just a few funds to have beaten the SEP 500 Index over the past few years. Manager Angel Agudo has a contrarian approach, targeting companies with specific problems he believes will be resolved.

OCF: 0.95%
ISIN: GB00B89ST706

Man GLG Continental European Growth C Professional Acc

A winner in the Moneywise Fund Awards 2016, this fund aims to achieve above-average, long-term growth through investing in shares of companies listed on the European Stock Exchanges. The manager invests in companies that enjoy a firm leadership position, plus companies that are emerging winners already enjoying clear competitive advantages.

OCF: 0.9%
ISIN: GB00B0119487

Man GLG Japan CoreAlpha C Professional Inc or Acc

Japan is a major developed market, and this is a sound choice for getting core Japanese equity exposure into your portfolio. It invests in large-cap Japanese companies focusing on out-of- favour ‘value’ stocks.

OCF: 0.9%
ISIN - Inc: GB00B3F47512
Acc: GB00B0119B50

Stewart Investors Asia Pacifi c 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, 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.

OCF: 1.01%
ISIN: GB00B9SMK778

Absolute return

Newton Real Return W Inc or Acc

A good ‘one stop shop’ for the more cautious investor, it aims to generate a total return compromised of long-term capital growth and income by investing in a broad multi-asset portfolio. The fund’s manager Iain Stewart’s first priority is capital protection and then he looks to deliver returns of 4% above cash a year over the longer term.

OCF: 0.79%
ISIN – Inc: GB00B7W36529
Acc: GB00B8GG4B61

Bonds

Fidelity MoneyBuilder Income Y Inc or Acc

A relatively conservatively managed, high-quality, investment-grade corporate bond portfolio, it aims to provide an attractive level of income and 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 go-anywhere bond fund that aims for a high income and capital growth by seeking out the best fixed-income opportunities in the world.

OCF: 0.73%
ISIN – Inc: GB00B544HM32
Acc: GB00B4T6SD53

MI TwentyFour Dynamic Bond I Inc or Acc

By investing in a broad range of bonds and fixed-income assets, it aims to provide an attractive level of income along with an opportunity for capital growth.

OCF: 0.78%
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.

OCF: 0.45%
ISIN – Inc: GB00B8H7D001
Acc: GB00B6ZDFJ91

Property

Henderson UK Property Feeder I Inc or Acc

This fund has a commitment to paying a high income together with some growth of capital through investment primarily in commercial property and property-related assets.

OCF: 0.81%
ISIN – Inc: GB00BYP82C20
Acc: GB00BYP82D37

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

 

Published: 14 July 2016
Last updated: 05 July 2017

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