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Tom’s Top 5
Funds to watch
for in 2017
selftrade.co.uk
@EQSelftrade
Tom
Sieber
Tom Sieber from Shares Magazine
has offered up the following list
of top 5 funds for 2017 to give
you a head start on choosing what
funds you’ll be investing in this
year. With so many to choose from
sometimes it helps to have the
choices narrowed down.
See which ones suit your goals for investment,
take some time to do your own research on
them and get started on putting investing at
the top of your to do list for 2017!
Tom Sieber is the deputy editor at Shares
Magazine and has more than eight years’
experience working in investment journalism.
What is a “traditional” fund?
You might be happy picking your own
investments such as shares in large
brands, but funds are an easy way to get a
professional who is knowledgeable about the
markets to pick your investments for you.
A fund is a ready-made basket of investments,
which could include a varied range of large
brands in the UK, or overseas for example.
By having different investment components
within one fund this helps to easily spread
some of the risk.
There are many different types of funds, and
each one will have a different objective and
investing outcome so be sure to understand
what those are before buying.
Tom’s Top 5 Funds
to watch for in 2017
Polar Capital Global Insurance
C L I C K T O INVE S T &
S E E P E R F OR MANCE
The Fund aims to provide an attractive total return,
irrespective of broader economic and financial market
conditions, by investing in companies operating within the
international insurance sector.
Bond yields tend to go up during spells of inflation and rising
prices are an increasing factor in some developed economies
including the UK. Global insurance firms can benefit from rising
bond yields and the strong weighting of the industry to the
US means it could also benefit from a strong dollar and rising
interest rates. The team behind this fund are highly experienced.
Legg Mason Japan Equity
C L I C K T O INVE S T &
S E E P E R F OR MANCE
This fund offers exposure to medium-sized and small
companies in Japan and is managed by the highly-experienced
Hideo Shiozumi.
He has demonstrated his ability to outperform the market
when Japanese stocks are in demand. There are reasons to be
optimistic about the prospects for Japan, including structural
reform, a supportive central bank and attractive valuations.
Just over a third of the stock allocation is within the Health
Care sector.
Vanguard Life Strategy 80 Equity Fund
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C L I C K T O INVE S T &
S E E P E R F OR MANCE
The fund’s investment objective is to achieve income and/
or capital returns through exposure to a diversified notional
portfolio.
This is a passive fund, part of a wider range, which
aims to build a portfolio made up of 80% equities and 20%
bonds. This would likely suit an investor with a long-term time
horizon due to the substantial weighting towards shares which
are typically higher risk than bonds. Charges are low at just
0.22% a year.
Capital at risk
Jupiter UK Special Situations
CL ICK T O INVEST &
SEE PERF ORMANCE
The objective of this fund is to obtain capital growth by
exploiting special situations principally within the UK.
Manager Ben Whitmore’s skill at identifying quality businesses
which have been unfairly neglected by other investors could prove
useful amid a shift away from so-called ‘expensive defensives’.
Whitmore looks for enduring businesses which are going cheap
and runs a pretty tight portfolio of around 40 names. He uses two
value based screens to identify opportunities and then analyses
the individual qualities of a company. Top holdings include BP,
HSBC and Aviva.
Schroder Recovery
CL ICK T O INVEST &
SEE PERF ORMANCE
The fund aims to provide capital growth with at least 80%
of the fund invested in shares of UK companies.
Running a concentrated portfolio of around 30 stocks, the fund
takes a contrarian approach aiming to buy when most others
are keen to sell and sell when they want to buy. They work on
the assumption that outright insolvency is rare and even badly
hindered companies can bounce back amid improving conditions.
Banks such as Royal Bank of Scotland and Barclays feature heavily
in the portfolio.
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