Five funds for a Chelsea wedding

It's August and, between holidays, weekends can often be taken up with weddings. This year, Chelsea has had a wedding of its own: last week, Sarah, our colleague, exchanged vows.

To mark the occasion and to celebrate the nuptials, we thought it would be fun to suggest some investment alternatives to the traditional wedding rhyme: something old, something new, something borrowed, something blue...

Something old: Rathbone Income

'Something old' represents continuity and protection. Rathbone Income is one of the oldest funds on the Chelsea Selection, dating back to 1971. It has been run by manager Carl Stick since the year 2000 and has increased its dividend in 24 out of the past 25 years. Data for the fund starts in September 1994 and, over the past 25 years, it has returned 852%* compared with a peer group overage of 482%* and stock market returns of 477%*.

Something new: TB Evenlode Global Income

'Something new' offers optimism for the future. TB Evenlode Global Income is one of the newest funds on the Chelsea Selection, having been launched in November 2017. It was added to our preferred list less than a year later, as we were optimist managers Ben Peters and Chris Elliot could emulate the success of the strategy used for a number of years on TB Evenlode Income. Since launch it has returned 27%** for investors compared with 17%** for the global index and 10%** for its peer group.

Something borrowed: Black Rock Corporate Bond

'Something borrowed' symbolises borrowed happiness or good luck. Our investment pick, however, invests in company borrowing: corporate bonds. Managed by Ben Edwards since 2012, this predominantly investment grade corporate bond fund can also invest in other fixed income assets like government bonds and asset-backed securities. It's top ten holdings*** currently include three UK gilts, a Tesco bond and a Time Warner cable bond.

Something blue: Investec UK Alpha

'Something blue' stands for purity, love and fidelity. In investment terms, blue is usually associated with companies or their shares which are considered to be a reliable investment: blue-chips and the FTSE 100 index is seen as the global benchmark for blue-chip firms listed on our markets. Investec UK Alpha is run by Simon Brazier Simon, we aims to buy quality companies that consistently create value for shareholders and will have at least 50% of the fund invested in FTSE 100 companies.

A sixpence in her shoe: Jupiter Financial Opportunities

And finally, the sometimes forgotten end to the rhyme is 'a sixpence in her shoe', which is a wish for good fortune and prosperity. Chelsea originally mailed details of this fund to clients in June 1997, and it has featured consistently on the Chelsea Selection in the intervening years. Originally managed by Philip Gibbs and now Guy de Blonay, it has returned almost 19 times^ its initial investment in just over 20 years.


*Source: FE Analytics, total returns in sterling for the fund, FTSE All Share index and the IA UK Equity Income sector, 8 September 1994 to 7 August 2019
**Source: FE Analytics, total returns in sterling for the fund, the MSCI World index and the IA Global Equity Income sector, 20 November 2017 to 7 August 2019
***Source: Fund fact sheet, 30 June 2019
^Source: FE Analytics, total returns in sterling, 2 June 1997 to 7 August 2019, based on £10,000 invested
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. James's views are his own and do not constitute financial advice.

Published on 12/08/2019