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Merian UK Alpha Class U1 - Income (GBP)

Sell:91.79p Buy:91.79p Change: 0.04p (0.04%)
Prices as at 30 October 2020
Change: 0.04p (0.04%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 30 October 2020
Change: 0.04p (0.04%)
Prices as at 30 October 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This fund tries to grow your money by investing in UK companies that have been overlooked and underappreciated by others. It's managed by Richard Buxton, a talented fund manager with plenty of experience investing in the UK. Plus he's got the support of a strong, well-resourced team.

The fund can be more volatile than the broader UK stock market because the manager tends to invest in relatively few companies. This means each can make a significant contribution to performance although it's a higher-risk approach. Overall Richard Buxton has done a good job for long-term investors but there's no guarantee his past success will be repeated.

We currently have higher conviction in other funds that invest in the UK. You can find our favourites on the Wealth 50.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

Richard Buxton delivered better performance than his benchmark during his early career at Barings. But that portfolio was managed with a different style to the Schroder UK Alpha Plus and Merian UK Alpha funds.

The manager's contrarian approach means he often invests in out-of-favour areas of the market. These areas can stay unloved for quite some time, so it's important to invest for the long term.

Investment Philosophy

Richard Buxton looks for unloved companies with strong financials and solid plans to grow profits. He takes a long-term approach and doesn't deal much. That helps keep transaction costs low.

Process and Portfolio Construction

The manager identifies areas of the market that could benefit from change that has gone unnoticed by other investors. He then buys shares in companies he thinks have the potential to perform well when the change becomes more widely recognised. A proven, well-incentivised management team and good corporate governance are also important features.

He tends to focus on larger businesses, although he has the option to invest in higher-risk smaller companies if he spots an opportunity.

question mark Manager Track Record Based on HL Quantitative Research

  • Barings Uk Growth A GBP Inc
  • FTSE All-Share TR
  • Schroder Prime UK Equity I Inc
  • Schroder UK Alpha Plus A Inc
  • Old Mutual UK Alpha A Acc
  • Merian UK Alpha A GBP Accu
  • FTSE All-Share TR

Fund Track Record

30/10/15 to 30/10/16 30/10/16 to 30/10/17 30/10/17 to 30/10/18 30/10/18 to 30/10/19 30/10/19 to 30/10/20
Annual return 8.80% 14.49% -4.05% 11.53% -22.60%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Merian Global Investors was created in 2018 when the team at Old Mutual Global Investors broke away from the wider Old Mutual business. The company offers funds investing across the globe - from the UK and Europe to Asia and the US. None of the managers are constrained by a 'house view'. Instead they're given the flexibility to invest their funds wherever they find the best opportunities.

Information about the fund

Fund manager biography

manager photo
Manager Name: Richard Buxton
Manager start date: 11 December 2009
Manager located in: London

Richard joined Merian as Head of UK Equities in June 2013. He was previously Head of UK Equities at Schroders, where he managed the Schroders UK Alpha Plus Fund for over 10 years. Prior to Schroders he spent over a decade at Baring Asset Management, having commenced his investment career in 1985 at Brown Shipley Asset Management. Richard was awarded the Outstanding Contribution to the Industry Honour at the Morningstar OBSR Awards in 2012 and has a BA in English Language and Literature from Oxford University (1985).

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account