Standard Life Investments Global Smaller Companies Fund Platform 1 Acc
New for 2018. A concentrated portfolio of smaller companies
A newcomer for 2018, and an open-ended alternative to Edinburgh Worldwide investment trust, comes in the form of Standard Life Investments Global Smaller Companies.
Run by Alan Rowsell since the fund's inception in 2012, this is a concentrated portfolio of around 50 stocks. Rowsell had a stellar 2017, posting returns that were double those of the Investment Association's global sector, thanks to a strong run for smaller companies and the manager's stock-picking prowess. The fund has also significantly outperformed its peer group over five years.
At the end of 2017, Rowsell pointed to the market remaining in an uptrend and the economy in a cyclical upswing. He noted that valuations were high but earnings expectations were improving.
Going into 2018, his fund stands to benefit from a seasonally strong period for the market that typically runs until the spring. Meanwhile, the cut in corporation tax in the US is a clear positive for US small companies — in which more than 40 per cent of the fund is invested — given that they have higher average corporate tax rates than large companies.
Regardless of economics or politics, his bottom-up investment process remains focused on identifying high-quality, sustainable growth businesses. He believes this approach should outperform over the business cycle, as it has in the past, and is resilient during economic downturns.
His investment process involves the use of 'the matrix', a stock-screening process created by Standard Life Investments, now Aberdeen Standard. This helps him to identify ideas from a 6,000 stock universe.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Aberdeen Liqdty (Lux) Sterling Z-1||4.51 %|
|Teleperformance SE||3.26 %|
|HMS Holdings Corp||3.19 %|
|Shenzhou International Group Holdings Ltd||3.01 %|
|ServiceMaster Global Holdings Inc||2.97 %|
|Evolent Health Inc A||2.94 %|
|Aspen Technology Inc||2.59 %|
|Pigeon Corp||2.59 %|
|Abiomed Inc||2.56 %|
|Alarm.com Holdings Inc||2.54 %|
|United States||45.13 %|
|United Kingdom||13.40 %|
|Asia - Emerging||7.52 %|
|Asia - Developed||5.60 %|
|Consumer Cyclical||15.01 %|
|Financial Services||14.90 %|
|Consumer Defensive||8.28 %|
Alan Rowsell, an honours graduate in Economics & Politics from Bath University who joined Singer & Friedlander in 1997. He has previously worked at Cazenove and HM Treasury. Alan is an associate member of the UK Society of Investment Professionals.
Data provided by Morningstar.
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