Ten investments for King Charles III

By Sam Slator on 2 May 2023 in Equities

As the nation prepares to celebrate the Coronation of King Charles III this weekend, we’ve noticed many a coronation-themed press release and article popping up in our inboxes.

So, as the saying goes, if you can’t beat them, join them!

As well as gathering with friends and family at traditional garden parties this Saturday, the FundCalibre team also thought it would be fun to see if we could find ten tenuous Elite Rated fund links to the occasion. Here’s what we came up with!

1. Murray Income

While King Charles is head of the armed forces and the Church of England, this UK equity income investment trust is run by another Charles – Charles Luke. He aims to provide investors with a high and growing income combined with capital growth by investing in a portfolio of 30-70 UK companies. The trust is conservatively managed and targets resilient companies which can thrive in any economic scenario. It is also due to celebrate its centenary this year, having been founded in June 1923.

2. Invesco Global Focus

The new sovereign is taking over the reins from his late mother Queen Elizabeth II and many would argue he has big boots to fill. Another person taking on responsibility this year is John Delano. John will take over as lead manager of the Invesco Global Focus fund in July and will be responsible for £122m of assets under management. John spoke to us recently about the fund and his plans for the future in this episode of the ‘Investing on the go’ podcast series:

3. VT Gravis Clean Energy Income

A long-standing advocate for sustainability and climate action, the ‘Green King’ wants to keep the coronation as low-carbon as possible. It is rumoured visiting dignitaries have been encouraged to take scheduled flights rather than private jets and the Queen Consort will be wearing a ‘recycled’ crown.

The VT Gravis Clean Energy Income fund is a portfolio of assets that derive energy from renewable, zero emissions sources, as well as companies saving energy through efficiency measures. This includes solar, wind and hydro-electric power, as well as energy storage, energy efficiency, bio-energy, geothermal, heat pumps and the smart grid.

4. Janus Henderson European Focus

Now that he is King, Charles will no longer be able to ‘dabble’ in politics. Instead, he will have to keep studiously clear! One fund manager who has always tried to ignore the politics of a country is John Bennet, manager of Janus Henderson European Focus.

“Always remember, European equities do not equal European politics. Look at the facts and ignore the noise when you are investing,” he said. The portfolio typically has 30-40 holdings, which are weighted by conviction. John uses a combination of sector analysis and stock selection in his process, which produces a ‘best ideas’ portfolio with the flexibility to invest across all industries in the European equity market.

5. Ninety One Global Gold

As per tradition, the King will be crowned with the 17th Century St Edward’s Crown during the coronation service at Westminster Abbey. It is made up of a solid gold frame set with rubies, amethysts, sapphires, garnet, topazes and tourmalines. Ninety One Global Gold’s philosophy is that investing in gold equities is better than investing in gold itself.

The manager believes that gold equities offer leverage to the gold price – so, if you believe in gold you are better off owning gold equities. In addition, unlike physical gold, many gold miners pay a dividend and these pay-outs have been rising in recent years.

6. City of London Investment Trust

To celebrate the coronation of King Charles III, the Association of Investment Companies (AIC) published a list of the 36 investment companies that were established before the King was in his cradle. The City of London Investment Trust was established as far back as 1891, and has joyed 56 years of consecutive dividend rises and stable management for the past three decades.

Annabel Brodie-Smith, Communications Director of the AIC, said: “Investment companies are a 19th century invention that remain just as relevant in the 21st century. As we celebrate King Charles’s coronation, it’s reassuring to think that one in ten investment companies that are around today, were launched before he was born.”

7. Liontrust UK Smaller Companies

A majestic life-sized lion statue has been made from natural materials by residents with learning disabilities and additional needs to celebrate His Majesty King Charles III’s Coronation. Artist-in-residence Jo Werrett is helping create the magnificent statue, echoing the lions on the Royal Standard flag. When complete he will sit on a wooden pedestal, and be proudly displayed in Windsor Yards shopping centre in the run-up to, and during, the Coronation weekend.

Any Liontrust fund would have fit the bill here, but we’ve gone with Liontrust UK Smaller Companies as it is the oldest in a range run by Anthony Cross and Julian Fosh, with their distinctive investment process.

8. Premier Miton US Opportunities

Joe Biden will be skipping the event, but it’s not the snub some may think, because it’s not unusual for US presidents to miss the British coronation: in fact, no US leader has ever attended the ceremony. Prince Harry will, however, be making the trip over the pond.

We think Premier Miton US Opportunities fund has an excellent, well-defined process, whilst its managers also have the flexibility and pragmatism to adjust the portfolio to different market environments. We like its ability to invest down the market cap spectrum. We also believe that the emphasis on capital-light, high return on capital businesses is a good way to invest.

9. Guinness Global Innovators

The coronation will also break with tradition by diminishing the role of the iconic Gold State Coach. It will still be used for the epic procession that comes after the coronation ceremony, however, for the pre-ceremony procession the Diamond Jubilee State Coach will be used instead. It’s a state-of-the-art vehicle built in 2010 which boasts hydraulic suspension, an onboard heating system and electric windows.

As the name of the Guinness Global Innovators fund suggests, it is all about finding, and investing in, innovative and disruptive businesses which are changing the world in which we live. The team has identified nine innovation themes and they pick the highest quality, fastest growing and best value stocks from within them.

10. EdenTree Responsible & Sustainable UK Equity

And finally, to mark His Majesty the King’s Coronation, thousands of organisations across the country are getting together from Monday 8th May to give us all the chance to help out in our own local communities. From checking in on someone who’d like a bit of company or volunteering for a charity, the more of us who join in, the bigger help we will be. So, if you haven’t already done so, sign up now!

As pioneers of responsible investing, EdenTree Responsible & Sustainable UK Equity seems a fitting fund to finish on. The company offers even the most discerning client a justifiable investment opportunity as ethics are at the core of the business. One of the first ESG funds to launch back in 1988, this fund is designed for regular savers—originally for clergymen and family—and conservation of capital is one of its primary objectives.

_{Photo by Pro Church Media on Unsplash}