A fully flexible way to invest
4 minute read
Just like your weekly grocery order reflects what you like to cook and eat, a fund manager’s portfolio reflects their investment preferences. And if you wander down the bargain aisle, it’s possible to find some very interesting companies to invest in. We take a look at a fund which has been snapping up good quality bargains for a number of years.
Who's it for? All investors
If you’re going shopping, when do you think you’re getting a bargain? And if the supermarket shelves are full of thousands of products, how do you fill your basket? It’s these types of questions – thinking about the UK’s listed shares, rather than food and drink – that the manager of the Man GLG Income Fund has in his mind at all times.
Henry Dixon has been in charge of this fund since 2013, and leads a small team of analysts and fund managers. Going back to the initial question, they believe there are two types of bargains when shopping for UK shares. The first is similar to a ‘buy one, get one half price’ offer on your favourite breakfast cereal. If they can buy a company for less than it’s worth, that is a deal worth investigating.
The second type of bargain the team likes is similar to products found in the discounted aisle. A tin of beans might be discounted because the packaging is a bit dented or the veg is a slightly funny shape. But this probably doesn’t change how tasty your beans on toast or your roasted peppers are when you come to make your lunch. Finding a healthy company that is producing good profits, but other investors are overlooking, is something the team get excited about.
The repeatable way in which investment ideas are selected is what’s notable about this fund. The process means that it finds ideas in both large and small companies. But, as smaller companies can be seen as riskier investments than their larger counterparts, the managers need to see a bigger potential bargain before investing in those smaller businesses.
The team fill their investment basket with between 40-60 of these ideas, ideally buying them when they think other investors are starting to agree with them. These companies all need to be paying a dividend too.
When they are no longer a bargain, hopefully because they have gone up in price, Henry and his team sell them and look elsewhere within their investment supermarket for the next idea.
Just like your weekly grocery order reflects what you like to cook and eat, a fund manager’s portfolio reflects their investment preferences. It’s very clear what Henry and his team look for in a company, and have become well regarded UK investors over a number of years. And whilst past performance is no guide to future returns of course, there’s no reason that the team can’t continue to be savvy investment shoppers over many years to come.
In addition to the Man GLG Income Fund, there are several more funds on the Barclays Funds List which invest in the UK market, two of which have a similar focus on income. Find out more information on these funds.
Correct at the time of publishing.
To diversify your investment, you may like to consider our own Barclays Ready-made Investments (RMI). The RMI are just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified one-stop solution for investors. Ready-made Investments are not the only funds that we offer and they won’t be appropriate for everyone.
Past performance of the fund and its manager are not a reliable indicator of their future performance.
We don’t offer personal investment advice so if you’re unsure you should seek that independently.
Funds are designed for the long term so you should only consider them if you can stay invested for at least five years.
These are our current opinions but the future, as ever, is uncertain and outcomes may differ.
Read the Assessment of Value report [PDF, 683KB] for funds run by Barclays.
The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and their effects on you will depend on your individual circumstances.
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