04 Apr 2023
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
The LF Lightman European fund uses a value-focused investment approach to construct a relatively concentrated portfolio and is managed by an investment house that specialises in European equities. The manager, Rob Burnett, is very disciplined in the application of his process and is prepared to back his convictions at stock and sector level.
Burnett has used the same value-orientated investment process throughout his investment career and has been very successful. This is in comparison to both the European equity fund universe as a whole, despite the outperformance of growth as an investment style for large parts, and particularly relative to other value managers. The focus on operational momentum and balance sheet strength in addition to traditional value factors has proven to be very beneficial and means the fund does not have a ‘special situations’ or ‘recovery’ feel to it but more of a traditional value bias. This is one of the few value-biased fund options within Europe and is a very strong option from those available.
The fund invests in shares of property companies whose main business is to invest in and manage properties throughout the developed world. This is a passively managed product which tracks FTSE EPRA NAREIT Developed Dividend Plus Index. The index represents stocks which have a one year forecast dividend yield of at least two per cent.
This fund offers investors a blend of an income orientated product with the potential for capital gains. L&G’s pragmatic replication approach means it seeks to mitigate costs by trading only when necessary and remaining within set parameters to achieve returns comparable to the underlying index it tracks. The index being tracked requires a minimum forecast dividend for the forthcoming year and would suit investors seeking income from the asset class.
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The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.