Technology was another theme that worked well for the fund, including internet security companies Fingerprint Cards, Ingenico and Gemalto.
Looking ahead, the manager expects the continuing economic backdrop of sluggish growth to be supportive for equities and while valuations are no longer cheap they are not particularly expensive either. However, he adds: “We are trying to find stocks and companies that will deliver earnings and dividends growth irrespective of economics.”
Expert View
Darius McDermott, managing director, Chelsea Financial Services:
“This is the smallest fund of the three with roughly £50m of assets. It has been the most consistent since its launch in 2008, however, so it’s perhaps a surprise the fund hasn’t attracted more money. It currently has approximately 50 companies making it quite a diversified portfolio at this level. Unlike the other two funds, it’s not really a true small-cap fund though as it has roughly 40 per cent in mid caps too. That’s not an issue as long as investors know this is the case before investing. The manager has a large overweight to German and Irish companies and, unlike the other two funds, has quite large underweights in Switzerland, Norway and Italy.”
