Experts share their investment trust tips
24th August 2018 09:59
by Fiona Hamilton from interactive investor
This team of specialists did well with their trust tips for the past 12 months. Now, Fiona Hamilton brings us their picks for the next year.
Three experts whose research we find particularly helpful all made creditable choices for the last 12 months.
Simon Elliott, head of investment companies at Winterflood Securities, achieved the highest share price total returns with his pick of Monks Investment Trust, up 21%.
Charles Cade, head of investment companies research at Numis Securities, picked HgCapital Trust, which did well within the private equity sector, gaining 18.6%.
Alan Brierley, who leads the investment companies team at Canaccord Genuity, also did well given his defensive emphasis, as his selection of the sterling- denominated shares of BH Global (BHGG) hedge fund achieved a gain of 15.4%.
For the next 12 months, Cade picks Schroder AsiaPacific fund (SDP), which seeks to capitalise on Asian growth through a bottom-up approach. "Manager Matthew Dobbs invests in quality companies with good corporate governance, strong balance sheets and sustainable earnings, and has an impressive long term record," Cade says.
Elliott prefers SDP's sister trust Schroder Asian Total Return (ATR), which has a similar five year NAV total return but a more nuanced approach and a much higher rating.
"Managers Robin Parbrook and King Fuei Lee attempt to capture long-term growth trends in Asia, such as the rise in consumption, through benchmark-agnostic investments driven by fundamental research and the potential for absolute returns.
"In addition, they use hedging to reduce unwanted country and market exposure,"Â Elliott explains.
Brierley is sticking with BH Global as he remains cautious about prospects. "It is one of the few investment companies to offer a genuine low correlation with bonds and equities, with limited downside risk," he says.
"In a risk-off environment, we believe its fortunes will be inversely correlated with those of risk assets. When this happens, any company that can preserve capital will have significant value."
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.