First 50 Funds update: One third of Britain's best-performing funds are core funds

28 September 2016
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Nine of the UK’s 25 best-performing funds – and three of Moneywise’s top 50 First Funds for beginner investors – are “core funds”, according to new research from TD Direct Investing.

A core fund can be described as being “solid”. It will usually consist of a well-diversified collection of stable, proven companies that are likely to grow at a steady pace.

These funds are often used as foundation in portfolios. In contrast, individual shares, flutters on riskier investments, and other exotic trades generally act as ‘satellites’ around these so-called core funds.

 

But new research from TD Direct Investing highlights that of its top 25 funds, nine funds are core funds, and of these, three are also recommended in Moneywise’s 50 First Funds list.

These are CF Lindsell Train UK Equity, CF Woodford Equity Income, and AXA Framlington UK Select Opportunities

The table below details these funds in full, and we’ve highlighted which are recommended as part of Moneywise’s First 50 Funds. Click on the fund names to see their factsheet.

To qualify as ‘best-performing’ in the first instance in TD Direct Investing’s eye, its key requirements are that the fund manager must have a 10-year track record running either the same fund or two funds managed consecutively in the same style, while the funds must outperform both their Investment Association sector peer group and their benchmark within this time.

A benchmark is the standard against which funds are typically measured. Different funds use different benchmarks, but common ones include the performance of the FTSE All-share, the S&P 500, or even the rate of inflation.

If a fund doesn’t beat its benchmark, then you may want to consider putting your money into a passive fund that tracks the benchmark instead of an actively managed fund that isn’t performing as well.

 

Fund managerFundMorningstar ratingAnnualised return (%)Sector outperformance (%)
Mark SlaterMFM Slater GrowthBronze12.27.1
Michael Lindsell & Nick TrainCF Lindsell Train UK Equity - Moneywise First 50 fundGold11.56.3
Anthony Cross & Julian FoshLiontrust UK Smaller CompaniesBronze11.74.4
Francis BrookeTroy Trojan IncomeSilver9.34
Neil WoodfordCF Woodford Equity Income - Moneywise First 50 fundBronze*93.8
John WoodJOHCM UK OpportunitiesSilver8.63.7
Mark BarnettIP UK Strategic IncomeBronze8.63.7
Harry NimmoSLI UK Smaller CompaniesSilver10.93.6
Daniel NickollsOld Mutual UK Smaller CompaniesGold10.53.2
James de Uphaugh & Chris FieldMajedie UK EquityBronze8.43.2
Martin CholwillRoyal London UK Equity IncomeSilver8.43
Mike FoxRoyal London Sustainable LeadersBronze7.22
Matt HudsonSchroder UK Alpha IncomeBronze7.32
Audrey RyanKames Ethical EquitySilver6.91.7
Nigel ThomasAXA Framlington UK Select Opportunities - Moneywise First 50 fundGold6.71.6
Adrian Frost & Adrian GosdenArtemis IncomeGold*6.61.3
Richard BuxtonOld Mutual UK AlphaSilver6.21
Alastair MundyInvestec UK Special SituationsGold6.11
Jan Luthman & Stephen BaileyLiontrust Macro Equity IncomeBronze6.20.9
Derek StuartArtemis UK Special SituationsGold60.8
Carl StickRathbone IncomeBronze5.80.6
Stephen AdamsKames UK EquityBronze5.70.6
Lesley DuncanSLI UK EthicalBronze5.60.4
Mark CostarJOHCM UK GrowthSilver5.50.3
Richard Newbery & Alistair WhiteAberforth UK Small CompaniesSilver7.40.1

 

 

 

 

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