11 funds and trusts for the adventurous investor

A panel of collective investment experts name some choice investment trusts and funds that are perfect for those wanting to take their portfolio off the beaten track.

Fundsmith Equity

Core growth - 1 yr +12.4%; 3 yrs +68.4%; yield 0%

The manager of Fundsmith Equity is the high-profile Terry Smith, who believes there are only a limited number of companies in the world worth investing in. Mick Gilligan likes his style: "Smith has stringent investment criteria, focusing on companies operating in industries with high barriers to entry that are resilient to change. Such a process results in a portfolio of businesses with dependable profits."

Lindsell Train Global Equity

Core growth - 1 yr +18.3%; 3 yrs: +70.4%; yield 1.5%

Correlation between developed markets may have increased in recent years, but the case for a globally diversified portfolio of companies remains as strong as ever, says John Husselbee. The managers of Lindsell Train Global Equity concentrate on businesses with truly sustainable business models. Husselbee says: "The focus here is towards the consumer - the top ten holdings feature many global and familiar names."

TB Wise Investment

Adventurous growth - 1 yr -3.2%; 3 yrs +24.3%; yield 0.4%

Tony Yarrow, who manages TB Wise Investment himself, believes it provides attractive opportunities, being biased towards smaller companies and value. He explains: "There is pent-up value in the fund, which is 70% invested in investment trusts with an average discount of 18%." He says another plus is that it is 30% invested in private equity.

Artemis Global Income

Core income and growth - 1 yr +6.6%; 3 yrs +61.4%; yield 3.7%

What Gavin Haynes likes about Artemis Global Income is that its manager Jacob de Tusch-Lec has complete investment freedom. "He is not restricted in his choice of investments by size, industry or region, and will back his own convictions and take a flexible approach," says Haynes. He thinks de Tusch-Lec has the portfolio well positioned for income and capital growth.

Veritas Global Equity Income

Adventurous income and growth - 1 yr -5.2%; 3 yrs +11.2%; yield 3.9%

Robert Burdett is another fan of Artemis Global Income, but he also favours Veritas Global Income, run by "one of the most disciplined boutiques in the industry". The fund has not performed so well recently, but he is expecting a turnaround. He points out: "It has struggled due to its value bias, but for the years ahead we would expect this to be an opportunity rather than an issue."

RIT Capital Partners Trust

Core growth - SP 1 yr +12.9%; 3 yrs +45.2%; yield 1.9%

Andrew McHattie likes the way RIT Capital Partners Trust's chairman and managers balance long-term growth objectives with an emphasis on capital preservation. "With about half its assets in equities and half in specialist funds, the trust has a broad asset and geographical diversification that is far less constrained than many competitors," he says.

Bankers Trust

Core growth and income - SP 1 yr +10.5%; 3 yrs +52%; yield 2.4%

Bankers has achieved above-average returns within the global growth sector over the past five years, and Tim Cockerill is attracted by its long-term commitment to growing its dividend, as well as its capital growth potential. "It is run on a multi-manager basis using the best ideas from some of Henderson's most experienced managers," he says.

Law Debenture Trust

Core growth and income - SP 1 yr -1.7%; 3 yrs +34.7%; yield 3.2%

Despite a difficult run in 2015, Law Debenture has an excellent five-year record, and Peter Hewitt remains a fan. He says manager James Henderson's contrarian investment style can result in disappointing phases, but has worked splendidly over longer periods, while the trust's fiduciary business boosts its yield.

Scottish Mortgage Trust

Adventurous growth - SP 1 yr +6.9%; 3 yrs +93.9%; yield 1.1%

Although SMT's concentrated portfolio and bold gearing can make it quite volatile, it has an outstanding five and 10-year record, and John Newlands believes it is attractive for long-term investors. "Tom Slater and James Anderson run it like a very large focus fund, with a firm eye on the Asian tiger and little regard for short-term market noise," he says.

Edinburgh Worldwide Trust

Adventurous growth - SP 1 yr +13.2%; 3 yrs +59.8%; yield 0.4%

Edinburgh Worldwide holds a concentrated portfolio of mainly small but potentially fast-growing companies. Jean Matterson likens it to a junior version of Scottish Mortgage, also managed by Baillie Gifford. "Most of its holdings are less mature than SMT's and not all will turn into world-beaters, but if enough do, it should prove a rewarding investment," she says.

BlackRock World Mining

Immediate income - SP 1 yr -39.5%; 3 yrs -59.7%; yield 10.7%

Alan Borrows sees BlackRock World Mining as a contrarian global play with an attractive yield. Although there may be sleepless nights along the way, he expects the big mining companies eventually to benefit from cuts to capacity and to keep paying dividends. Borrows expects any cuts in the fund's dividend to be less than 30%, implying a yield of over 6%.

The panel

Mick Gilligan is a partner in private client stockbroker Killik & Co., where he is currently head of research. He analyses funds and trusts and manages the firm's multi-manager portfolio service.

John Husselbee is head of the Liontrust multi-asset team. He has 25 years of experience in managing multi-manager portfolios, including at Henderson and Rothschild.

Tony Yarrow set up his own firm, Wise Investment, in 1992; he is now chairman of the firm and manages portfolios for clients as well as two in-house investment funds.

Gavin Haynes is managing director of Whitechurch Securities, which provides discretionary portfolio management to private clients. He has been managing fund portfolios since 1997.

Robert Burdett began managing funds at Rothschild and then Credit Suisse. In 2007 he joined Thames River to help set up its multi manager business, later taken over by F&C.

Andrew McHattie runs the McHattie Group, an authorised firm that publishes specialist investment newsletters. He has been the editor of Investment Trust Newsletter since 1996.

Tim Cockerill is investment director of Rowan Dartington, a Bristol-based wealth manager. Investment trusts have featured in its portfolios for many years. Rowan Dartington offers discretionary and advisory services.

Peter Hewitt has managed F&C Managed Portfolio trust since April 2008, having managed its forerunner, F&C Managed Portfolio Service, since 2002. He is a member of F&C's Global Equities team.

John Newlands has overall responsibility for investment trust research at wealth manager Brewin Dolphin. He is supported by fund analysts who cover specific sectors, researching both open and closed ended funds.

Jean Mattersonis a partner and chief investment officer of Rossie House Investment Management, which she joined in 1996 after 20 years in the investment business with Stewart Ivory.

Alan Borrows is a senior fund manager at Liverpool-based Seneca Investment Managers, which favours a value-oriented approach to multi-asset investment.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.