Rated funds review: UK growth

Amongst the list of our sister publication Money Observer's "Rated Funds", the best investment returns in the year to 28 October came from funds invested in undervalued and ethical UK companies, with CF Miton UK Value Opportunities and Standard Life Investments UK Ethical topping the table with returns in excess of 20%.

Money Observer Rated Funds are a collection of funds and trusts compiled from a potential universe of around 3,000 open-ended funds and 400 investment trusts.

Independently selected and reviewed by the Money Observer team in conjunction with Financial Express, these Rated Funds showcase some of the best-performing investment vehicles across a broad range of regions, sectors and asset classes.

Over the past 12 months CF Miton UK Value Opportunities has delivered the most impressive return of our UK growth selection at close to 26%.

Consistent

This compares to an average return of just 9.8% from the Investment Association's UK all companies sector and makes it the fifth best performer among its 274 sector peers.

CF Miton UK Value Opportunities launched in March 2013 under the management of George Godber and Georgina Hamilton.

The duo joined Miton from Matterley, which Godber co-founded and where they were involved with the top performing Matterley Undervalued Assets fund. They have continued their success at Miton, with their fund consistently posting top-quartile returns.

The second best performer among our Rated Funds over one year is Standard Life UK Ethical, which has returned close to 20.5% in the 12 months to 28 October. Launched in 1998, the fund is one of the most established ethical funds in the UK market and is a consistent top quartile performer.

Managed by Leslie Duncan since 2004, the fund uses a negative screen to exclude companies whose activities it considers un-ethical or harmful to society and/or the environment.

Value and ethical funds

Other value and ethical funds dominating the top of the Rated Fund list include the former charge of investment legend Anthony Bolton, the Fidelity Special Values Trust, which has returned 19.2% in share price gains over the 12 months to 28 October.

EdenTree UK Equity Growth (formerly Ecclesiastical UK Equity Growth) also comfortably outperformed its sector, with a return close to 18% over the past year.

Of those Rated Funds that have underperformed their sector, the Artemis Alpha Trust is the most disappointing.

In the 12 months to 28 October the trust's shares have shed over 9% of their value compared to an average gain of more than 10% from the Association of Investment Companies' UK all companies sector. The trust was placed "under review" during Money Observer's last Rated Funds review.

Also under review is Old Mutual UK Alpha, run by celebrity fund manager Richard Buxton. The fund has similarly disappointed over the past year, gaining just 4%, while over six months it is also the worst performer of our UK growth selection, shedding over 9% of its value.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.