Henderson, Artemis, Standard Life Investment, Jupiter, Scottish Widows Investment Partnership (Swip) and Schroders funds have won places on the ranking, which identifies portfolios with long-term prospects and strong management.
Andy Parsons, head of investment research at The Share Centre, explained why the funds were chosen for the Platinum 120 and what the products could offer their investors.
Stuart O’Gorman and Ian Warmerdam’s £362.2m Henderson Global Technology Fund
“Investors have been reluctant to expose themselves to technology since the burst of the tech bubble. However it is growing in importance in our everyday lives which is why we have added the Henderson Global Technology fund to the Platinum 120.
“The fund benefits from a shift in demographics that are helping to drive technological adoption. In some developing countries, demand for mobile phones is far greater than that of land lines. It is also placed to benefit from changes in consumer behaviour as online shopping continues to grow and technology companies take advantage of this.”
John Dodd and Richard Hulf’s £109m Artemis Global Energy Fund
“Energy and in particular fossil fuels are a major part of our lives and as global populations expand and countries develop, demand will increase while cheap and easily extractable sources deplete. Over the past couple of years, energy prices have generally risen strongly, helping boost the profits of many companies.
“Although the fund was only launched in April 2011, and therefore has a very short performance history, we believe it may be suitable for those investors wishing to seek direct and specific exposure to the continual energy story.”
Harry Nimmo and Alan Rowsell’s £55.2m Standard Life Global Smaller Companies Fund
“For many investors exposure to smaller companies is often confined to a traditional UK fund, aiming to combine and blend large caps with a few small to mid-cap stocks. However, there are a growing number of investment opportunities that offer investors flexibility and a truly global reach, as they seek to identify the very best smaller company opportunities from around the world.
“This fund may be suitable for investors seeking global diversification across regions and market cap, albeit appreciating the added risk and volatility small cap companies generally exhibit.”
Avinash Vazirani’s £249.4m Jupiter India Fund
“We have long held the belief that India has all the potential to become a major economic powerhouse however it continues to be beset with numerous issues and has underperformed over the past couple of years.
“Although the pace of development remains slow, the region is evolving given the demographic appeal. Infrastructure remains a key element of the region’s future and whilst improvements have been made, there is considerable and significant development still required.
“This fund may be suitable for higher risk investors who can appreciate the economic opportunity this region affords, and who are prepared to be patient.”
James Clunie’s £37.2m Swip UK Flexible Strategy Fund
“Many funds that look to generate returns in all forms of market conditions have failed to deliver on these statements. Whilst it is fully appreciated that these types of funds are often left behind in very positive market sentiment, they do serve a purpose in a well-diversified portfolio where an investor is looking to help limit potential downside risk.
“For those investors seeking an investment opportunity which allows the fund manager true flexibility in his investment decisions and with the ability to short a company where concerns arise over valuations and business risks, then this fund may well be suitable.”
Matthew Dobbs’ £15m Schroder Small Cap Discovery Fund
“Unlike many other smaller cap style investment mandates, this fund is managed on a fairly concentrated basis with the total number of holdings currently being around 78.
“Whilst there are a number of country specific smaller company funds available, investors need to be aware that such investments naturally increase their overall portfolio volatility and exposure to issues such as currency fluctuation and specific geographical concentration.
“However, for those feeling slightly more adventurous it can often lead to directly holding a fund specifically targeting the small to mid-cap arena.”
