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3 Best Performing Funds Since May Called Snap Election

UK funds invested in smaller companies have been the best performing since Theresa May called her snap election seven weeks ago

Karen Kwok 9 June, 2017 | 3:51PM

UK funds invested in smaller companies have been the best performing since Theresa May called her snap election seven weeks ago, data from Morningstar Direct has revealed.

After the UK election ended in a hung parliament with no party securing a majority, Conservative Prime Minister May has said she will form a government with the support of the Democratic Unionist Party.

Speaking after visiting Buckingham Palace today, she said only her party had the “legitimacy” to govern after winning the most seats and votes. The Tories are eight seats short of the 326 needed to make a majority in Parliament.

During the election campaign – which ran from April 18 when Prime Minister Theresa May called a snap election until yesterday – the FTSE 100 gained 4.2%, while the FTSE 250 gained 2.3% and the FTSE Small-Cap gained 3%.

We examined which fund managers investing in UK stocks have delivered the most to shareholders during the campaign, and found that those with a bias towards smaller companies outperformed.

Marlborough UK Multi-Cap Growth

Up 8.3%

From April 18 to June 8, this fund has gained 8.3%, according to data from Morningstar Direct. The fund has been managed by Richard Hallett since 2014. The fund gained 7% in 2016 and it has 12.1% three-year annualised returns. It falls under the UK flex-cap equity Morningstar category.

RPC Group (RPC) is the stock that has the highest portfolio weighting, 4.4% within the fund. RPC Group PLC manufactures and sells packaging and technical components. The company primarily engages in the sale of packaging materials to the food and beverage and pharmaceutical industry. It also sells components for automobile. The fund also owns Homeserve (HSV) and ASOS (ASC), which gained 22.7% and 24.6% year to date respectively.

Jupiter UK Smaller Companies

Up 7.4%

From April 18 to June 8, this fund has gained 7.4%, according to data from Morningstar Direct. The fund has been managed by James Zimmerman since 2015. The fund gained 23.1% in 2016 and 12.8% in 2015.

The fund seeks to achieve long term capital growth by investing primarily in UK Smaller Companies. The fund seeks to obtain the objective by investing in high quality smaller companies which the manager believes to have significant growth potential over the medium to long term. Particular care is taken over stock selection and the manager places a strong emphasis on the quality of a company’s management.

Online retailer Ocado Group (OCDO) is the stock that has the largest weighting, of 4%, within the fund. Ocado’s activities are retailing and distribution of grocery and consumer goods. Shares of the company gained 9% year to date. The fund also owns a gaming company Quixant (QXT) and Anglo-Eastern Plantations (AEP), which gained 7.8% and 24.9% year to date respectively.

M&G Smaller Companies – Up 7.2%

Since April 18, the fund has gained 7.2%, according to data from Morningstar Direct. This fund has been managed by Johan Du Preez since 2015 and John Lothian since 2011. It gained 3.6% in 2016 and 16.9% in 2015. It has a

This fund aims to achieve capital growth by investing in smaller companies, where good management can have most impact on earnings. Investment in such shares can offer prospects of above average capital growth. Income is not a major factor and the yield can be expected to be less than that of the FTSE All-Share Index.

The top three stocks in the fund’s portfolio are chemical manufacturer Synthomer (SYNT), Dechra Pharma (DPH) and e-commerce technology provider accesso Technology Group (ACSO). 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
accesso Technology Group PLC1,910.00 GBX2.41-
Anglo-Eastern Plantations PLC859.50 GBX1.72-
ASOS PLC5,690.14 GBX1.61-
Dechra Pharmaceuticals PLC2,012.20 GBX0.06-
Homeserve PLC801.64 GBX1.41-
Jupiter UK Smaller Companies312.20 GBP-0.01
M&G Smaller Companies GBP R Acc211.86 GBP0.40
Marlborough UK Multi-Cap Growth A GBP1.45 GBP-1.86
Ocado Group PLC296.10 GBX-1.95-
Quixant PLC450.00 GBX7.78-
RPC Group PLC922.94 GBX0.10-
Synthomer PLC487.80 GBX0.33-
About Author Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk