Balfour plans to lower Framlington risk profile

Balfour, who joined the firm from Baillie Gifford, says she is seeking to lower the stock-specific risk element of the portfolio. The investment objective of achieving growth at a reasonable price will not change.

By doing this, Balfour is aiming for consistent returns, rather than the spectacular ones achieved by her predecessor who is now at JP Morgan Fleming Asset Management. While she will run a more diversified portfolio, she says the number of holdings will be less than 50.

Listing her key tenets to investing, she says companies must be able to sustain growth or exceed consensus expectations over three to five years. In addition, she looks at whether a stock is fairly valued and if the management efficiently uses its capital to create value for shareholders.

Hargreaves Lansdown senior analyst Meera Patel says: “Balfour is a more conservative investor than Mitchinson and won’t achieve the same level of outperformance. If investors want more risk they should follow Mitchinson and invest in the JPMF Japan fund. However, I am comfortable continuing to hold the Framlington fund, although I do want to meet Balfour on a one-to-one basis.”