Given Brexit, 2018 is sure to be a challenging year for investors, but there’s no time like the present to be researching the best funds for your money.
As the markets become volatile, what investors should be looking for are managers with the best long-term track records.
Here’s five investment funds worth investigating this year:
1. Artemis Income
One fund that appears time and time again in the top analysts’ pick-lists is Artemis Income.
Managed by the highly experienced Adrian Frost, this fund has delivered consistently high returns over the past five years and there’s no reason to suggest next year will be any different.
Adrian does this by investing in high yielding businesses with sound sales records and good cash flow.
Typically, these are big long term performers, such as GlaxoSmithKline and Imperial Brands – companies that deliver good dividends year-on-year.
2. Royal London UK Equity
Run by Martin Cholwill, the Royal London UK Equity Fund has been running for more than 30 years and over the past ten years has outperformed the FTSE All Share Index with returns of 113% compared to 72%.
Targeting both income and growth, Martin focusses on undervalued stocks that will should deliver a reliable flow of cash. A historic yield of 3.6% means it’s a strategy that appears to be working.
Compare the Top 10 UK Investment Rates
3. HL Select UK Shares
Brexit means looking at funds composed of companies with resilience and longevity – those with the integrity to survive whatever the economy throws at them.
Steve Clayton and Charlie Huggins are experts in picking out these types of businesses and the HL Select UK Shares Fund targets companies rich with real customer loyalty, financial clout and pricing power.
This diverse portfolio of 28 large, medium and higher risk small companies be able to survive the most challenging economic conditions.
4. Jupiter UK Special Situations
Another strategy in uncertain times is to invest in a ‘special situations’ fund.
Ben Whitmore has been running the Jupiter UK Special Situations Fund which targets out of favour, lowly valued securities. Over the past ten years, the fund has returned 120%.
With that track record, Ben is probably already hard at work planning another successful year for the fund.
5. Old Mutual North American Equity
Finally, while the US stock market is a difficult nut to crack for even the best fund managers, it makes an excellent ‘passive’ investment for those looking to play it safe.
These type of investments simply track the market, rather than targeting specific companies. Perhaps one of the best examples here is the Old Mutual North American Equity Fund.
Run, since 2011, by Ian Heslop, Amadeo Alentorn and Mike Servent. By investing in big, safe brands, such as Bank of America, Facebook and Apple, the team has delivered big rewards for investors over ten years, returning an impressive 256%, compared with 217% for the MSCI North American index.
The US is certainly worth keeping in mind when eyeing up investment opportunities for 2018. Trump’s spending plans should boost the US economy in the short term.
Nothing is Guaranteed Apart from Uncertainty
However, politics and potential global conflict could scupper everyone’s plans for a prosperous 2018.
As for Brexit, right now, there are simply too many unknowns, so the best strategy might be to play it safe and invest in funds tracking historically sound businesses.Last updated: March 2nd, 2018