There are over 3,000 FCA registered funds domiciled in the UK. Square Mile Research adopt a rigorous qualitative fund analysis in 6 key areas to arrive at the Select List for Selftrade. These are some of the criteria they look for…
A strong investment team with complementary skills that seeks alignment of the managers’ interests and those of their investors. They expect to find a culture where the interests of the investor come first.
An intellectually sound investment philosophy underpins the investment process. Managers seeking to outperform the market consistently should be able to explain what their edge is and why this edge can be expected to persist.
They expect to see a defined process, which encapsulates the managers’ investment philosophy and see a consistent application of the process. The funds objective needs to be realistic and suitable for the fund’s strategy.
The managers’ best ideas should have prominence in the portfolio. The fund should be operating within a robust risk framework and be appropriately diversified.
They monitor performance and expect it to be consistent with the fund’s objectives. In this increasingly price conscious world, cost is becoming an important consideration. They need to ensure that fees are both appropriate and offer value for money for investors.
Access to and continual dialogue with the investment managers to monitor and understand developments. Funds are reviewed quarterly and may be removed and replaced if deemed appropriate.
I would prefer a less bumpy journey and understand that this may result in lower returns. I am willing to invest for at least 5 years.
I understand the journey may be bumpy but would prefer it not to be too rough. I am willing to invest for a reasonable timeframe (at least 5-7 years).
I understand that adventurous investing may mean taking a bumpier path with the hope of higher returns at the end. I am prepared to invest over a longer time horizon (at least 7-10 years).
Selftrade does not provide investment advice. The mutual funds selector is produced by Square Mile and is not the view or opinion of Selftrade and Selftrade accepts no liability for any loss caused as a result of the use of this information.
