Bestinvest says
Benefiting from a long standing manager in Colin Morton this is a large cap fund, which encompass more growth ideas and has less of an income bias than it's sister fund, Equity Income also managed by Morton. Note historically funds with a high FTSE 100 content have found it harder to outperform, due to this area of the market being more efficient and thus presenting less opportunities for the stock picker. Note the fund used to be on the buy list but is now rated a hold, whilst we await evidence that the manager can turnaround more recent underperformance.
Whilst the fund does operate within some relative benchmark constraints, formal tracking error limitations do not apply. The stock selection process focuses on quality businesses capable of generating a high return on capital and free cash-flow which in turn is available for distribution. Pricing power is deemed to be crucial, this factor tends to lead the manager away from inherently cyclical stocks. The fund manager is not stylistically biased but is driven by his relentless philosophy of not over paying for companies, which will lead him to invest in both value and growth stocks. The manager is also responsible for Rensburg UK Equity Income fund which has around 80% commonality with this portfolio, differences tending to arise more at the edges of the portfolio. This fund will encompass more growth ideas and has less of a bias towards income.