20 active funds to outperform the market
4th August 2016 12:06
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. Here we have selected 20 active funds covering different asset classes to use as "satellites" alongside core tracker fund holdings.
Click here to see our 20 top index-tracking fund choices for "core" holdings, as well as a handy beginner's guide to fund buying.
UK stockmarket income
CF Woodford Equity Income C
orManaged 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%
SIN - Inc: GB00BLRZQ620
Acc: GB00BLRZQ737
MI Chelverton UK Equity Income B
or AccBy 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: 0.92%
ISIN - Inc GB00B1FD6467
Acc: GB00B1Y9J570
Marlborough Multi Cap Income P
orWith a bias to small- and mid-cap companies, it seeks to generate an attractive and growing level of dividend income, plus long-term capital growth.
OCF: 0.80%
ISIN - Inc: GB00B908BY75
Acc: GB00B907VX
UK stockmarket growth
AXA Framlington UK Select Opportunities ZI
orRun by the very experienced and highly respected Nigel Thomas, it can invest in UK companies of any size.
OCF: 0.83%
ISIN - Inc: GB00B703ZS07
Acc: GB00B7FD4C20
Old Mutual UK Mid Cap R
orIts 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
Managed by Giles Hargreave, 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
Global stockmarket
Fundsmith Equity I
orManaged by Terry Smith, it invests in equities on a global basis for the long term. It will not adopt short-term trading strategies.
OCF: 0.97%
ISIN - Inc: GB00B4MR8G82
Acc: GB00B41YBW71
Lindsell Train Global Equity B
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: 0.84%
ISIN - B Inc: IE00B3NS4D25
D Inc: IE00BJSPMJ28
Artemis Global Income I
orThe 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
Man GLG Japan CoreAlpha Professional
orJapan 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: 0.97%
ISIN - Inc: GB00B3F47512
Acc: GB00B0119B50
Stewart Investors Asia Pacific Leaders B
orIts 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: 0.91%
ISIN - Inc: GB00B57S0V20
Acc: GB0033874768
Fidelity Emerging Markets W
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: 1.07%
ISIN: GB00B9SMK778
Absolute return
Newton Real Return W
orA 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
Kames Absolute Return Bond Fund B
It aims to generate positive absolute returns for investors over a rolling three-year period, irrespective of market conditions.
OCF: 0.69%
ISIN: IE00B6SPX874
Fidelity MoneyBuilder Income Y
orA 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
orA 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
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: 0.80%
ISIN - Inc: GB00B57TXN82
Acc: GB00B5VRV677
Marlborough Global bond P
orA 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
M&G Property Portfolio I
or AccIt invests in a diversified portfolio of commercial property - such as retail, offices and industrial, predominantly in the UK. Offers good, core exposure to property.
OCF: 1.15%
ISIN - Inc: GB00B89X8P64
Acc: GB00B8FYD926
Henderson UK Property I
orThis 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: 0.85%
ISIN - Inc: GB00BP46GG64
Acc: GB00BP46GF57
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.
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