Bestinvest says
Benefiting from a long standing manager in Colin Morton this is a large cap fund, which has typically displayed less risk (volatility) than the UK equity market as a whole. Note the fund used to be on the buy list but is now rated a hold, whilst we await evidence that the manager's performance returns to a more consistent level. Furthermore ownership of the company has now changed.
Fund manager Colin Morton produces a portfolio with a focus on blue chip stocks. There is an income target of 25% above that produced by the FTSE All Share, but this is of secondary importance to its other target of above average capital growth. The process combines top-down and bottom-up factors, with macroeconomic themes guiding the core of the portfolio and relative valuations guiding the extent to which positions are over or under weight.
The main focus is 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. Inherently cyclical stocks are avoided. Morton is not stylistically biased but is driven by his relentless philosophy of not over paying for stocks, which will lead him to invest in both value (cheap stocks in relation to their assets) and growth stocks (companies with fast growing earnings).