Wellian Investment Solutions: Five alternative funds for income and growth investors

With the uncertainty of a General Election and the potential for interest rate hikes looming over next year, Wellian Investment Solutions lists five lesser known funds to see investors through.

Investment director Chris Mayo says the funds were picked because of their strong performance and the likelihood that it will continue.

“It is clear to see already that the bull run into global equities will continue next year with continued healthy growth looking likely in the U.S. economy,” he says.

“Both of these factors present a strong case for investor opportunism in our top five fund picks and will provide the foundation for some solid returns – particularly in the first few months of the year.”


Evenlode Income fund

Yarrow Hugh Evenlode 2014

Manager Hugh Yarrow, who has run the fund since launch in 2009, focuses on companies with high returns on capital and strong free cash-flow through a combination of quality and value in the portfolio with an emphasis on sustainable real dividend growth.

The £230m fund has a bias towards large cap stocks which have driven its recent performance.


Smith & Williamson UK Equity Income


Aiming to provide a high and growing income, the fund has been managed by Tineke Frikkee since July 2013 when she joined from BNY Mellon.

It currently yields a “highly attractive” 4.2 per cent, Mayo says.

The fund has a multi-cap approach, although it primarily focuses on mid cap stocks. As the fund is around £40m in size, it has the added potential to be more nimble when compared to its larger peers.


Miton UK Value Opportunities

Godber George Miton 2014

Launched in March 2013, the £143.6m fund is managed by George Godber and Georgina Hamilton, who ran a similar strategy previously at Matterley before joining Miton.

The managers invest into UK companies that are considered to be undervalued by the market with at least 20 per cent upside potential in the share price. A good fund for growth investors, Mayo says.


Franklin UK Smaller Companies


Another one for clients chasing growth, the management of the £130m fund changed in June 2012 and is now co-managed by Richard Bullas and Paul Spencer, who also work together on the firm’s UK Mid Cap fund.

The managers apply the same investment process used on the mid cap fund, and this has seen a turnaround in performance since then.


Old Mutual UK Opportunities

Simon Murphy rectangular

Managed by Simon Murphy, who is part of the experienced UK equity team at Old Mutual Global Investors, the fund is a UK equity fund running both long and short positions and aims to deliver positive absolute returns through the market cycle.

The £41.6m fund may be suitable for investors who are looking to participate in the UK equity market with a much lower volatility.

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