Foundation Fundlist
The Foundation Fundlist is a list of preferred funds across the major sectors, carefully selected by our experts in the Charles Stanley Collectives Research Team. Covering both funds and investment trusts, and including passive funds or “trackers” as well as actively managed funds, the list is regularly reviewed. Find out how we select funds and portfolios.
It is easy to spot funds that are part of the current Foundation Fundlist. Just look for this logo next to funds on our website.
Actively Managed Investments
Passive Investments Trackers
Most Viewed & Bought Foundation Funds
Actively Managed Investments
Actively managed investments - managers pick stocks or other securities with a certain goal in mind, for example beating a particular index or achieving a certain level of return whilst assuming a certain level of risk. Managed investments generally have higher annual management charges than passive investments.
Passive Investments
Also known as 'trackers', aim to track the performance of a particular index, such as the FTSE 100 or S&P 500. Passive funds offer a simple and cost effective way to gain exposure to a broad range of shares or bonds. Passive investments generally have lower annual management charges than actively managed investments.
Most Viewed
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Fundsmith Equity I
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Acc
Fundsmith
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Royal London Sterling Extra Yield Bond Z
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Inc
Royal London Asset Mgmt (IRL)
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L&G US Index Trust I
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Acc
Legal & General UT Mgr Ltd
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JOHCM UK Equity Income Y
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Inc
JO Hambro Capital Management
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Artemis Global Income I
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Acc
Artemis Fund Managers Limited
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Fidelity Index World P
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Acc
Fidelity International (FIL In
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Merian UK Smaller Companies U1 GBP
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Acc
Merian Global Investors (UK) L
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Invesco Asian (UK) Y
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Acc
Invesco Fund Managers Ltd
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JOHCM UK Equity Income Y
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Acc
JO Hambro Capital Management
Most Bought
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Fundsmith Equity I
Acc | Fundsmith
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L&G US Index Trust I
Acc | Legal & General UT Mgr Ltd
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Royal London Sterling Extra Yield Bond Z
Inc | Royal London Asset Mgmt (IRL)
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Scottish Mortgage
Inc | Baillie Gifford
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Stewart Investors Asia Pacific Leaders B GBP
Acc | Stewart Investors (UK)
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Fidelity Index World P
Acc | Fidelity International (FIL In
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Invesco Asian (UK) Y
Acc | Invesco Fund Managers Ltd
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Artemis Global Income I
Acc | Artemis Fund Managers Limited
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JOHCM UK Equity Income Y
Acc | JO Hambro Capital Management
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M&G Global Dividend I GBP
Acc | M&G UK
Inclusion here does not imply a specific buy recommendation. Investors should be aware that past performance is not a reliable indicator of future results and that the price of shares and other investments, and the income derived from them, may fall as well as rise and the amount realised may be less than the original sum invested.
Philosophy
Screening
Analysis
Foundation Portfolios
Philosophy
We believe detailed research can identify skilful active fund managers capable of adding value over the longer term. We are patient, willing to consider all styles of investing, and mindful of that at times, and in certain asset classes active management does not offer value for money versus passive funds. The funds we choose are run by talented investors using rigorously applied investment processes.
Screening
- Our universe is Open-Ended funds (unit trusts and OEICs) that are dealt on a daily basis and investment trusts.
- Our specially designed screen to generate new ideas does not reveal the name of the fund – only its characteristics – in order to ensure we have no bias.
- We monitor each fund we are interested in as part of our sector-based monthly research cycle.
- Fund performance, style, risk and income are all considered alongside other issues such as inflows/outflows and any capacity constraints.
Analysis
- We conduct around 300 face-to-face fund manager meetings a year.
- In-depth stock-by-stock performance analysis is undertaken before and after meetings.
- Comparison with peers, or passive alternatives.
- We wish to ensure our chosen funds excel in our three "P's": People, Process and Performance.
- We continually appraise risk, style, sustainability and governance, fees and operations.
People
- How experienced is the team or individual running the fund?
- Is the size and quality of the team appropriate for the fund? How does it compare with its competitors?
- Is there high turnover of staff running the fund – and if so, why?
- How is the fund manager incentivised? Are client interests aligned with fund manager incentives?
Philosophy & Process
- What does the manager believe drives asset price returns?
- Is the process repeatable, sustainable and applied consistently? What would make us change our mind?
- Does the manager have identifiable ‘skill’?
- What makes the approach better than those used by its competitors?
Performance, Risk & Style
- Is historic performance due to manager skill or exposure to a particular bias or style?
- Can it be earned at lower cost via a passive fund? Does active management work in this asset class?
- How does the manager think about and control risk in the fund? Is this approach appropriate?
- Can this fund perform well in the future? What will be the biggest impediment to its future success?
ESG & Operations
- Are ESG factors embedded in the investment process, or simply a box ticking exercise?
- Does this fund justify its fee level – and why?
- How liquid is the fund? Is it capacity constrained?
- If a closed-ended fund, how is it using their features for the benefit of shareholders?
Foundation Portfolios
- Made up from the Foundation Fundlist – 60 to 70 high quality, best idea open ended funds and investment Trusts.
- A range of passive alternatives chosen for transparency and cost.
- A low turnover, focused list of our best ideas for owning and asset class “through the cycle”.
Our Team
Rob and the Collectives Research Team are responsible for the Foundation Fundlist and Foundation Portfolios, with the Team undertaking active fund research for the firm. Rob has 15 years’ experience in Financial Services joining Charles Stanley from Hargreaves Lansdown in 2013 where he worked as a financial adviser and an investment analyst specialising in funds and collective investments.
Senior Analyst:
Rob Morgan