Investment Committee Quarterly Update - Q1 2012
1st February 2012
Our Investment Committee held its February quarterly review meeting earlier today and I am pleased to announce the results.
For Investment Advice please contact David Bates on:
Tel: 0113 259 3604
Email: dbates@bartlettgroup.com
This quarter, three changes are recommended to our choice of investment funds, affecting the UK, North American and Far Eastern equity sectors.
The fund that we are recommending be replaced in the UK equity sector is the Old Mutual UK Smaller Companies Fund, which has failed to meet the criteria set by the Committee on a consistent basis.
As a replacement, the Committee recommends the inclusion of the Cazenove UK Smaller Companies Fund.
Cazenove UK Smaller Companies Fund - managed by Paul Marriage since January 2006, the fund is ranked 1st quartile over 1, 3 and 5 years and has significantly outperformed the majority of its peers over these periods (figures to 27 January 2012). The fund aims to achieve long-term capital growth by investing primarily in UK smaller companies. At least 80 per cent of its assets will be invested in the UK listed companies that form the bottom 10 percent by market capitalisation.
The standard Annual Management Charge for the Cazenove fund is 1.5%, 25 basis points cheaper than the outgoing Old Mutual fund's charge of 1.75%.
The recommended change to our North American equity holdings will see the removal of the Legg Mason US Smaller Companies fund, which has failed to keep ahead of its peers on the grounds of risk-adjusted returns, by the AXA Framlington American Growth Fund.
AXA Framlington American Growth Fund - launched in December 1992, Stephen Kelly's fund seeks capital growth through investment principally in US, Canadian and Mexican large and mid-cap companies which, in the manager's opinion, show above average profitability, management quality and growth.
The standard Annual Management Charge for the AXA fund is 1.5%, identical to the outgoing Legg Mason fund charge.
The final change that we are recommending this quarter is the replacement of the Fidelity South East Asia Fund with the Newton Asian Income Fund.
The inclusion of the Newton Asian Income Fund brings a different style to the Far Eastern equity section of our portfolios, with a focus on dividend-paying companies, as well as those that are thought likely to bring good levels of capital growth. Together with holdings in China, Hong Kong and Singapore, the fund also invests in the Australasian region.
The standard Annual Management Charge for the Newton fund is identical to the outgoing Fidelity fund, being 1.5%.
Please note that past performance is no guarantee of future returns.
If you would like to learn more about the processes underpinning our fund selection strategies, or the services that we can offer, please contact me on 0113 259 3604.
David Bates
Investment Committee Chairman
1 February 2012
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Please note that past performance is not necessarily a guide to future returns. The value of investments and income from them may go down. You may not get back the amount originally invested. The value of your investment cannot increase in value whilst your funds are being transferred and by the same token will not fall during transfer.
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- Investment Fund Performance Brochure