Coupled Up: The Valentine’s Day Fund Picks That Work Better In Pairs

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  • Investing is all about complimentary characteristics – just like a successful relationship
  • Opposites attract when it comes to investment styles, geographies and risk
  • Don’t get mugged off – always make sure a fund is your type on paper before investing

Emma Wall, Head of Investment Analysis and Research:

As is often the case with relationships, the combination is greater than the sum of the parts. Love comes with many ups and downs, and so does investing.

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Pairing top funds with different characteristics – be that style biases, geographical exposures, or investment processes – means that they should perform well at different times in the market cycle, and offer your portfolio some downside protection. This Valentine's Day consider building resilience into your portfolio by coupling-up these funds.

Rathbone Global Opportunities and Jupiter Global Value

A classic case of opposites attract for these two global funds. Pairing a growth-biased fund like Rathbones with a value-stalwart from Jupiter means that your portfolio will feel the love, whatever style is leading the market. Both funds are run by experienced fund managers, who have shown to generation outperformance over time through stock-selection.

Because of the contrary nature of their investment styles expect portfolios which invest in different parts of the market, both in terms of sector – Rathbones is tech heavy vs Jupiter’s consumer cyclical overweight, and geographies – Rathbones is loaded up with US where Jupiter holds larger allocations in the UK and Germany.


Aviva UK Listed Equity income and Troy Trojan Income

While not as extreme in their style biases as the previous pair, here are two more funds that offer diversification for investors – generating income through value and growth tilted portfolios. Aviva UK Listed Equity Income is a value-biased fund, investing in large and mid-sized companies, overweight in financials, industrials and basic materials versus the index.

The manager looks to blend companies which offer a high yield now, with those offering the potential for dividend growth. Troy Trojan Income is more growth-biased, focusing on high quality companies with reliable cashflows which should translate to reliable dividends.

Pyrford Global Total Return and Baillie Gifford Managed

Multi-asset funds are perfect for investors who don’t want to do the “graft” and build their own portfolios. We’ve picked two with very different targets, and therefore very different investment processes.

Pyrford is all about capital preservation, using investments such as government bonds, gold and cash to proceed with caution. It will lag a rising market, but aims to outperform when markets go pop. Baillie Gifford Managed is a higher risk multi-asset fund, but offers the opportunity to do well when equity markets rise, particularly a rally led by growth-style stocks.