UK Growth Rated Funds

With tortuous Brexit negotiations to be resolved in 2018, investors might consider that 'UK growth' is a contradiction in terms. Indeed, many investment managers are turning more cautious on the outlook for the UK economy, amid its exit from the EU, low productivity growth and rising inflation. In addition, the stock market looks toppy, with much of the recent gains being driven by weakness in sterling as opposed to great fundamentals.

Most funds that pursue a growth strategy tend to prioritise companies delivering high and accelerating revenue growth. This may mean that, on conventional metrics, the companies can look quite expensive relative to the rest of the market. But fund managers reason that they are worth the price for the stronger growth they produce.

Companies of this type may be newer and smaller, and their share prices will tend to perform better than the market in a rising market but may fall more when sentiment is weak.

The danger with a growth strategy is that a company does not achieve its targets and is left looking expensive. To avoid this trap, growth investors look for 'growth at a reasonable price', to bring valuation discipline into their stock selection.

Growth managers may prioritise different types of company when investing. For example, some may look for high-quality companies that can grow their earnings in all market environments. Others may favour 'special situations', which can grow significantly from their current position.

We have 21 actively managed Rated Funds in this asset group. The six core funds tend to invest in high-quality companies with defensive characteristics. Most of the 15 adventurous fund selections favour small and medium-sized companies and also have a good track record of capitalising on mispriced investment opportunities. Seven index-tracking funds make up the Rated Passives list.

UK GROWTHBrowse other rated fund groups
Fund & Sector
Rated Funds Group
1 Month Perf.
1 Year Perf.
3 Year Perf.
5 Year Perf.
MI Chelverton UK Equ Grth
UT UK All Companies
View Factsheet
UK GROWTH2.1%
251 / 280
22.8%
1 / 274
93.3%
1 / 259
-
-
Marlborough UK Multi-Cap Gth
UT UK All Companies
View Factsheet
UK GROWTH-0%
278 / 280
19.8%
5 / 274
53.7%
6 / 259
96.6%
11 / 244
Man GLG Uvalued Ass
UT UK All Companies
View Factsheet
UK GROWTH4.5%
64 / 280
19.6%
6 / 274
39.6%
16 / 259
-
-
CFP SDLUKBftolgy
UT UK All Companies
View Factsheet
UK GROWTH1.6%
259 / 280
19.5%
7 / 274
69.3%
4 / 259
128%
3 / 244
Unicorn UK Growth
UT UK All Companies
View Factsheet
UK GROWTH2.9%
208 / 280
15.4%
13 / 274
70.9%
3 / 259
111.6%
6 / 244
Mrtl IT PLC
IT UK All Companies
View Factsheet
UK GROWTH2.2%
10 / 15
15.2%
4 / 15
44.6%
6 / 15
94.8%
5 / 13
R&M UK Equity Long Term Recovery
UT UK All Companies
View Factsheet
UK GROWTH3.7%
158 / 280
14.1%
20 / 274
37.2%
17 / 259
101%
10 / 244
Ardevora UK Equity
FO Equity - UK
View Factsheet
UK GROWTH1.9%
69 / 80
13.8%
5 / 78
31.2%
10 / 65
75.7%
6 / 50
Liontrust UK Ethical
UT UK All Companies
View Factsheet
UK GROWTH3.1%
195 / 280
13.4%
26 / 274
29%
51 / 259
77.7%
33 / 244
Old Mutual UK Dynmc Eq
FO Equity - UK
View Factsheet
UK GROWTH1.4%
74 / 80
13.1%
6 / 78
57.9%
2 / 65
134.6%
2 / 50
Fidelity Special Values PLC
IT UK All Companies
View Factsheet
UK GROWTH-0.8%
14 / 15
13%
6 / 15
46.9%
4 / 15
102%
2 / 13
Old Mutual UK Mid Cap
UT UK All Companies
View Factsheet
UK GROWTH1.4%
265 / 280
12.1%
41 / 274
53%
8 / 259
126.5%
4 / 244
Liontrust Spl Sits
UT UK All Companies
View Factsheet
UK GROWTH4.6%
56 / 280
11.6%
50 / 274
40.3%
14 / 259
79.4%
29 / 244
Slater Growth
UT UK All Companies
View Factsheet
UK GROWTH0.5%
276 / 280
11.4%
54 / 274
40.5%
12 / 259
115.7%
5 / 244
Royal London Sus Ldrs Trst
UT UK All Companies
View Factsheet
UK GROWTH2.5%
234 / 280
11.4%
56 / 274
27.1%
57 / 259
80.3%
27 / 244
LF Miton UK Val Opps
UT UK All Companies
View Factsheet
UK GROWTH2%
253 / 280
10.7%
63 / 274
40.4%
13 / 259
107.5%
7 / 244
LF Lindsell Train UK Equity
UT UK All Companies
View Factsheet
UK GROWTH1.3%
267 / 280
10.5%
67 / 274
32.1%
31 / 259
82.8%
22 / 244
AXA Framlington UK Mid Cap
UT UK All Companies
View Factsheet
UK GROWTH2.8%
218 / 280
10.1%
70 / 274
32.1%
30 / 259
87.8%
16 / 244
Franklin UK Mgrs Focus
UT UK All Companies
View Factsheet
UK GROWTH3.1%
196 / 280
8.8%
99 / 274
25.7%
69 / 259
87%
17 / 244
Newton UK Opportnts
UT UK All Companies
View Factsheet
UK GROWTH2.5%
237 / 280
6.2%
196 / 274
20.6%
102 / 259
62.3%
71 / 244
Data provided by
Reviewed 01 April 2018

Rated Funds Update: Rated Funds 2018

Review: first quarter of 2018

Our growth-oriented choices mostly did well against the benchmark indices: the FTSE All-Share fell by 6.8 per cent and the FTSE 250 index of medium sized companies fell by 5.7 per cent.  

Among the adventurous selections the best protection against market falls came from investment trust Fidelity Special Values, which was the only member of the group to post a positive return, of 2 per cent. However, that gain arose from the trust moving from a 4 per cent discount to net asset value to a premium of 1.9 per cent. The trust’s net asset value actually fell by a still-respectable 4.1 per cent.

Two other adventurous choices registered decent performance: the small-company oriented MI Chelverton UK Equity Growth fund lost just 0.6 per cent and Ardevora UK Equity fell by 1.7 per cent.

It was a similar story among core choices: CFP SDL UK Buffettology shed only 0.9 per cent and four other core choices significantly outperformed the market. 

The outlier in performance among adventurous choices was Unicorn UK Growth, with the fund slipping 7.7 per cent over the quarter, while core choice Slater UK Growth slipped by 6.2 per cent, which was still ahead of the All-Share.

Old Mutual UK Dynamic Equity has been placed under review. A Rated Fund since 2016, its very strong performance has drawn too much interest from investors and the fund is now effectively closed to new investments. 

Fund under review: Old Mutual UK Dynamic Equity

View a full list of our Rated Funds 2018 here