Ecclesiastical is well known for its ethical funds. But in one corner of the office "there is a fund full of vice", writes The Guardian's personal finance editor Patrick Collinson in Fund Strategy. And it's doing rather well. The Ecclesiastical UK Equity Growth fund is ranked ninth out of 323 funds in the UK All Companies' sector over one year. It is also in the top quartile over three years, with a ranking of 45th out of 302 funds.
"I call it the vice fund'," manager Andrew Jackson confirmed to Fund Strategy. "In it are some of the many things that are bad in life." The portfolio ranges across companies in tobacco, alcohol and petrochemicals and features names such as British American Tobacco, oil and gas firm Royal Dutch Shell and miner Rio Tinto in its top ten. The fund has 84 stocks, 50% of which are in the FTSE 100, 40% in the FTSE 250 and 10% in small caps. Sector-wise, the fund is riding on the back of a British industrial resurgence, with a hefty 35% of the portfolio in industrial stocks.
"It's still a fact that Britain has a pretty good collection of world-class industrial, chemical and pharmaceutical companies, and we are still one of the world's largest manufacturers," says Jackson. Each investment is capped at 4% of the overall portfolio. Yet Jackson's average holding period is still seven years. He looks for quality stocks (which have "verifiable earnings and the most secure profits streams"), aiming to earn 50%-100% over a three to four-year period.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
So, what's the fund's secret to success? Positive thinking, argues Jackson. "I'm the desk optimist," he says. Optimism helps you pick stocks and run with them.
Contact: 0800-107 0190.
Ecclesiastical UK Equity Growth Fund top ten holdings
| Oxford Instruments | 3.6 |
| GlaxoSmithKline | 2.7 |
| Royal Dutch Shell B | 2.5 |
| Spectris | 2.4 |
| BG Group | 2.4 |
| British American Tobacco | 2.4 |
| Vodafone Group | 2.3 |
| Senior | 2.2 |
| Rio Tinto | 2.1 |
| Next | 2.1 |
-
The top stocks in the FTSE 100After a year of strong returns for the UK’s flagship index, which FTSE 100 stocks have posted the best performance in 2024?
-
A junior ISA could turn your child’s pocket money into thousands of poundsPersuading your child to put their pocket money in a junior ISA might be difficult, but the pennies could quickly grow into pounds – and teach them a valuable lesson about money
