There are thousands of funds available to UK investors, which can make it difficult to find a fund that suits your needs. In many cases, investors use Morningstar’s Gold/Silver/Bronze rating system to find suitable investments. Sometimes it helps to speak with friends, family and professional advisers to figure out which funds would help you meet your investment goals. But in this instance, you can count on your fellow Morningstar users to help guide you to quality investments. The following list contains the top five most popular, researched funds on Morningstar.co.uk:
1. Aberdeen Emerging Markets Fund
The Morningstar research on this Gold-rated fund has been the most viewed by our site users, with Morningstar analyst Amaya Assan explaining in her analyst research that the chief attraction of this fund is the management team’s thorough research and investment process. Their process focuses on “quality companies that have sustainable, competitive business models, strong balance sheets, high returns on assets and capital, and [good] corporate governance.” However, the research warns that this fund can be volatile, along with other emerging market funds.
2. Kames High Yield Bond Fund
Investors have been pouring their money into high-yield bond funds over the last few months, so it’s little surprise that this Silver-rated fund is receiving so much attention. The fund is run by an experienced, respected manager, Phil Millburn, who is supported by co-manager Melanie Mitchell. “We view Milburn and Mitchell as experienced practitioners in the high-yield markets and we have a high regard for their rigorous company analysis,” writes Morningstar analyst Marianne Weller in her latest research report.
3. Aberdeen World Equity Fund
On a performance basis, this Silver-rated fund ranks in the top decile compared to its peers over three-, five-, and 10-year periods. Therefore, it’s no surprise that it is receiving so much attention from investors. The latest research report by Morningstar analyst, Muna Abu-Habsa, explains how the fund’s 12-person management team relies solely on fundamental research and does not use quantitative filters.
4. Newton Asian Income Fund
By simply looking at this fund’s impressive five-year performance, it’s easy to see why investors have flocked to this £2.3 billion fund. Morningstar analyst Lena Tsymbaluk explains in her latest research report that the fund “applies a strict yield discipline, aiming for at least 35% more income than its index.” The fund is rated Silver by Morningstar.
5. Blackrock Gold and General Fund
Morningstar analyst Anthony McDonald writes in his latest research report: “We think this [fund] is a high-quality way to invest in gold-related equities in a risk-controlled manner.” The gold-focused fund has a Gold rating, indicating that Morningstar analysts believe the fund will outperform its peer group and benchmark on a risk-adjusted basis over the long term.
Data for the above list was collected between 1 April and 22 August 2012.
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