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The best rugby teams, like the best investment portfolios, are all about harmony.
Every element has its own role to play: you wouldn’t get very far down the field with a whole team of Owen Farrells, just as you wouldn’t make the most of global growth by only investing in British companies.
“Owning 15 funds means you can gain access to all geographical locations as well as smaller, mid-sized and larger companies,” said Adrian Lowcock of investment platform Willis Owen. “This number should also allow for exposure to bonds, property, commodities and gold as well as different investment strategies.”
With the help of three investing experts – and rugby buffs – Telegraph Money has put together the dream first XV for a winning portfolio.
The props
“Maybe not spectacular to watch, but rock-steady and reliable, props are a key part of any good team and do much of the hard work,” said Sam Slator of wealth advisers Chelsea Financial Services.
She tipped Janus Henderson UK Absolute Return and Smith & Williamson Enterprise as funds that would fit nicely into these positions. These funds aim to achieve positive returns for investors, no matter how the rest of the market is performing.
“While they won’t race off in really strong markets, they have the ability to make money both when stocks are rising and when they’re falling,” Mrs Slator added.
The hooker
A key decision maker, the hooker makes the call on when to throw in the ball and coordinates the timing at the scrum. “The Troy Trojan fund, run by Sebastian Lyon, is a good option for this position,” said Mr Lowcock. “Timing is taken into account in its careful choice of investments which include stocks and shares, bonds, precious metals and cash.”
Second row
One of the second row forwards catches the ball in the line-out, the other is the giant who picks him up. Together they make a solid, dependable unit. Mr Lowcock picked the Janus Henderson Strategic Bond and M&G Global Dividend funds to create a reliable engine room for his starting XV.
“Bonds typically provide a good defense and protect investors’ money in volatile markets,” he explained. The M&G Global Dividend fund adds to this solid base, he said, thanks to its meticulous selection of income-paying stocks.
The flankers
From tackling the opposition to pushing in a scrum and lifting in a line-out, being a top flanker means being a great all-rounder. “The same can be said for strategic bond funds which can reposition themselves depending on what’s going on in the market around them,” Mrs Slater explained.
She recommended TwentyFour Dynamic Bond and M&G Optimal Income as her long-term favourites in this sector. “They can, and do, invest in areas of the market that others avoid,” she said.
Number 8
As England’s Number 8 in Japan, Billy Vunipola will play a key role linking the fronts and the backs. “There to create stability and balance, Artemis Monthly Distribution fits this role nicely,” said Mrs Slater. “It aims to achieve an attractive monthly income as well as growing your money, so it can be good in attack and defence.”
Scrum half
Small and nimble, a great scrum half looks for any hint of weakness in the opposition to make big gains. This is similar to the approach of the Scottish Mortgage Investment Trust, said Nick Wood of investment manager Quilter Cheviot.
“This trust is the dazzling talent of our team, seizing the opportunities when they arise and disrupting the opposition. It focuses on rapidly growing companies that are likely to take market share from others.” Some of Scottish Mortgage’s biggest success stories have been Amazon, Netflix and Alibaba.
Fly half
These are big points-scorers who can make the most of opportunities from conversions and penalties. Like star players in this position such as Jonny Wilkinson or New Zealand legend Dan Carter, a star fund manager needs great skill and accuracy to outperform the market.
“Fly half belongs to Nick Train at Lindsell Train UK Equity,” said Mr Wood. “His methodical process has all the hallmarks of the laser-like precision of England’s fly half Owen Farrell. The fund has significantly outperformed over an extended period.”
Right wing
Wings sit on the fringes rather than in the main stream of play. “They occupy their own space and are fast and flashy – but can sometimes score an amazing try,” said Mrs Slator.
The ideal right wing to score big in her portfolio is AXA Framlington Global Technology, a racy and specialist sector that has previously made big returns via breakthrough companies. The fund seeks to grow your money by investing in fast-growing technology stocks from around the world.
Left wing
Just as fast and flashy, but playing on a less popular side, left wingers like Wales’ George North are also big points-scorers.
Mrs Slator advised investors to look to the home nation Japan to fill this niche. “The country has been unloved by international investors for many years, but actively managed Japanese funds and trusts have been able to surprise,” she said. “One of our favourites is Baillie Gifford’s Shin Nippon, which means ‘new Japan’.” This investment trust has made returns for investors of almost 600pc over the past 10 years.
The centres
These players needs to be strong and dynamic, running up and down the field without getting out of breath. Mr Wood tipped the Liontrust UK Special Situations Fund for this position because of its “ideal combination of forward momentum through its access to up-and-coming smaller British companies with its proven ability to outperform over the long term”. To complement the Liontrust fund in the other centre position Mr Lowcock chose Merian UK Smaller Companies which also looks to find the market leaders of tomorrow.
Full back
This defender’s job is to sweep up any mistakes or fumbles his teammates might make. Similarly managers taking a value approach to investing look to make gains through others underestimating the true worth of a company.
“Man GLG Undervalued Assets analyses company balance sheets to find undervalued opportunities,” said Mr Lowcock. “Turnover is high as the manager sells investments once they reach their price target and moves on to look for fresh ideas.”
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