980m a week but is boss ‘Drastic’ Dave Lewis off to Unilever? DAILY BRIEFING: Gatwick Airport saw passenger numbers increase by 2. Top investing money uk 2017 picks for 2017: Is it time to back value investing and where in the world will perform best this year? Top fund tips for 2017: Is it time to back value investing and where in the world will perform best this year?
Read this: Top fund tips for 2017: Is it time to back value investing and where in the world will perform best this year? After the turbulence of 2016, many investors will be wondering what this year could possibly have in store for them. The fallout from last year’s events are likely to take their toll on markets, as Donald Trump comes to power in the US, and the UK continues its efforts to disentangle from the EU. At the same time, upcoming events such as the French presidential election, and a potential recovery in the oil price and rise in inflation are also likely to affect how different asset classes perform. Last year, funds invested mainly in overseas assets soared as the pound slumped following the Brexit vote, while absolute return funds and smaller companies had a tougher time. Those funds owning overseas shares were given a boost by the fall in sterling, as earnings and asset prices translated back into more pounds.
But some suggest it could be a different story this year, if small companies benefit from a still relatively robust economy and domestic investment and investors turn to asset classes that can withstand rising inflation. While markets are impossible to predict, we have gathered the views of some investing experts who have examined all the factors and picked a selection of funds – and an investment trust – that they believe could be winners in 2017. Last year proved to be a difficult one for active fund managers trying to beat the UK stock market index. However, one fund manager who outperformed strongly was Alex Saviddes, manager of the JOHCM UK Dynamic fund. Saviddes is building up an impressive track record, employing a clearly defined process investing across the UK stock market. The manager adopts a value and contrarian stance of investing and I believe this style is going to be in favour this year. Although focused on generating growth, the fund will only invest in companies that pay dividends which I like in an environment where UK interest rates will remain at low levels.
With Donald Trump intent on implementing policies that will stimulate the US economy, I believe that investors seeking long-term growth should consider adding exposure to US smaller companies. Not many UK investors have exposure to funds in this area, even though the US small cap market is larger than the whole European stock market. Artemis US Smaller Companies fund manager Cormac Weldon has a very strong track record in the US and he is seeing opportunities in many US small cap sectors. Despite the recent rally, not many investors are talking about the Japanese market, but I see it as one to watch in 2017. Stephen Harker, manager of MAN GLG Japan Core Alpha, says he is seeing some exceptional value emerging in the country. Should Trump’s campaign promises be realised then mid-sized US companies stand to benefit from the extra infrastructure spending. This is a US small and mid cap fund managed by a very experienced and well-resourced investment team led by veteran investor Jenny Jones.
Jones is a cautious investor and believes avoiding losses is essential for growing capital over the long-term. This approach will cause the fund to lag during strong bull-markets but over time has proved successful. The team conduct bottom-up analysis to find companies that fit into one of three categories: steady eddies, turnarounds or under-appreciated growth. Real assets such as infrastructure have built-in inflation protection, as the rental income they generate rises with inflation. However, the market has yet to fully factor this into the asset class. International Public Partnerships is an infrastructure investment trust that buys directly into global projects – currently more than 110 – that are financially backed by the public sector.