His career running funds in the IMA universe spans back to 1992. According to FE Analytics, he has consistently beaten his peers over the short-, medium- and long-term.
Over the last decade he has returned 165.99 per cent while his peer group composite has made 121.57 per cent.
Performance of manager vs peers over 10yrs
Source: FE Analytics
He runs six multi-asset portfolios at Margetts, which all have a global focus. Here, he tells FE Trustnet which funds he rates across six regional sectors:
UK Equity Income
Ricketts says that he likes to hold more nimble funds in the UK equity income space, such as the FSA-offshore recognised Ardevora UK Income fund.
"The fund is headed up by Jeremy Lang," he said. "When he left Liontrust I think a lot of investors felt a bit let down, however he has set up this new fund and he does have a lot of experience."
"We do have a slight vested interest in the fund but it has a different style and is slightly more risky than other funds in its space."
"The fund is relatively small so can look for value in companies that sit outside of the FTSE 250 – which many other funds can’t do."
"We like to identify smaller-sized funds with experienced managers; for instance if Neil Woodford’s Invesco Perpetual High Income fund was only £100m I am sure it would be the best in the world."
The Ireland-domiciled Ardevora UK Income fund was launched in January 2011 in partnership with Margetts Fund Management.
Over that time it has returned 31.19 per cent while its benchmark – the FTSE All Share – has returned 16.08 per cent.
Ardevora UK Income requires a minimum investment of £5,000 and has an annual management charge of 1.5 per cent.
UK Growth
Ricketts continued: "I’ve always been a fan of Richard Buxton’s Schroder UK Alpha Plus, fund but if you are looking in the smaller to mid cap range I think one of the best funds is Franklin UK Mid Cap."
FE Alpha Manager Paul Spencer’s £713m Franklin UK Mid Cap fund is a standout performer in the IMA UK All Companies sector, delivering top-quartile returns over one, three, five and 10 years.
Performance of fund vs sector over 10yrs
Source: FE Analytics
It is the best-performing fund in the sector over 10 years, with returns of 502.77 per cent, while the FTSE 250 (ex IT) has made 376.29 per cent over the same period.
Franklin UK Mid Cap requires a minimum investment of £1,000 and has a total expense ratio (TER) of 1.58 per cent.
It is a top-10 holding in Ricketts’ Margetts Select Strategy fund.
Europe
Ricketts says he is finding opportunities in Europe because he does not think current valuations reflect company fundamentals.
"We have been overweight in Europe recently because the political risks surrounding the market have left certain stocks very undervalued," he explained.
"We look for funds that hold companies with global revenue streams, but are listed in Europe. It is hard to ignore Jupiter European, but we like the income theme so I would choose Standard Life European Equity Income."
FE Alpha Manager Will James’ five crown-rated Standard Life European Equity Income portfolio was launched in April 2009. It currently yields 4.33 per cent and is a top-quartile performer in the IMA Europe ex UK sector over three years, with returns of 37.38 per cent.
The fund has a TER of 1.61 per cent and requires a minimum investment of £500.
Standard Life European UK Equity Income is Ricketts’ largest holding in Margetts Providence Strategy.
Emerging markets
Again, the manager selected a fund with an equity income-focus, which he believes is a good way to play a volatile area such as emerging markets.
"I like using equity income funds to gain access to the region and Schroders has a number of very good Asia Pacific portfolios – overall, I would go for Schroder Asian Income," he said.
"Through funds like Schroder Asian Income, you’re actually getting a much better risk/reward as the income bleeds out the volatility."
"What we have found is that clients aren’t too fussed if a fund is only up 30 per cent while markets are up 35 per cent. However, they do not want the fund to drop 20 per cent if the markets do."
"Therefore we are constantly looking for funds that can give us a degree of downside protection in emerging markets."
The five crown-rated Schroder Asian Income fund is a top-quartile performer in the IMA Asia Pacific ex Japan sector over one, three and five years.
The fund, which has been managed by Richard Sennitt since November 2011, has a yield of 3.75 per cent. It requires a minimum investment of £1,000 and has a TER of 1.7 per cent.
Schroder Asian Income is a top-10 holding in both of Ricketts’ Margetts Opes Income and Margetts Venture Strategy funds.
Japan
Ricketts says he has never had much luck in Japan, but that investors who want exposure to the region should look at Jupiter Japan Income.
"I have never really been able to get Japan right," he commented. "It seems to be a curse at Margett as I bought Japanese funds just before the Kobi earthquake and the tsunami."
"We currently hold Jupiter Japan Income and that has meant we have caught the recent rally. However, we haven’t really bought into the idea that it is going to be a prolonged rally."
Jupiter Japan Income has a yield of 2.3 per cent and has registered second-quartile returns in IMA Japan over one, three and five years.
Performance of fund vs sector and index since Sep 2005
Source: FE Analytics
Simon Somerville’s fund was launched in September 2005 and has returned 35.2 per cent since then.
The Topix and the IMA Japan sector have returned 20.36 per cent and 12.35 per cent respectively over the same period.
Jupiter Japan Income requires a minimum investment of £500 and has a TER of 1.77 per cent.
US
Ricketts likes North America, but he believes passive funds are best suited to this area.
"I would only use trackers in the US, because it is so difficult to find active managers that add any real value in the region. Two funds that I like and use are L&G US Index and Vanguard US Equity Index," he said.
"Trackers help keep the TERs of funds down and they are usually high up in the sector – either first or second quartile," he added.
L&G US Index has returned 58 per cent over five years while the benchmark it tracks – the FTSE USA Index – has returned 70.42 per cent. The fund has a tracking error of 7.51 per cent over this time.
The £1.3bn L&G US Index fund has a TER of 0.82 per cent and requires a minimum investment of £500.
Ricketts counts L&G US Index as a top-10 holding in Margetts International Strategy.