Nine global fund and trust tips for 2017


These funds, split into core and adventurous brackets, are tipped by our expert panel to perform well over the coming 12 months.

You can find a profile of our panellists at the end of this article.


Core growth

Money Observer Rated Fund tickOur panel agree Rathbone Global Opportunities stands out in the 223-strong global sector. Under the management of James Thomson, the fund is 30 per cent ahead of the average global fund over the past five years.

Alan Steel likes Thomson's style of seeking out 'undervalued companies', while Rob Burdett compliments the manager's 'concentrated approach'. Thomson is currently steering clear of the emerging market regions, instead favouring the US.


Core growth

Steel describes Troy Trojan as his 'first choice goalkeeper' due to its focus on delivering capital appreciation with low volatility.

He says the fund has proved its worth in falling markets over the years due to its asset mix, which usually consists of 40 per cent in high-quality equities, with the rest held in fixed interest, gold and cash.

Mick Gilligan is also a fan of Sebastian Lyon, the fund manager at the helm.


Adventurous growth

Money Observer Rated Fund tickFor those willing to stomach higher levels of volatility in pursuit of higher returns, a small-cap strategy may fit the bill.

Invesco Perpetual Global Smaller Companies is truly global, with just 10 per cent of assets in the UK. The US weighting, at 30 per cent, is much lower than that of other global funds.

Brian Dennehy says: 'With more countries switching to fiscal stimulus to encourage their domestic economies, small-cap funds should be buoyed.'


Core growth and income

Fidelity Global Dividend has been a strong performer since launch in February 2012, posting gains of 100 per cent and leaving rival funds in the shade. Mick Gilligan is backing the fund to deliver again in 2017.

'Manager Dan Roberts' investment approach is to focus on well-managed companies with robust balance sheets and strong cash conversion,' says Gilligan.

'This should help the fund navigate through the heightened political and economic uncertainties impacting markets at this time.'


Adventurous growth and income

Lazard Global Equity Income is an underperformer in terms of performance over three and five years, but there are signs that a turnaround has started to take place, with the fund climbing up the league table over the past year.

This has been driven by the improving fortunes of emerging market equities, where the fund is overweight. Burdett adds: 'The way the fund is positioned may satisfy the more adventurous investor.'


Core growth

Monks IT has been rejuvenated since Baillie Gifford's (BG's) global alpha team took charge in March 2015.

As a result, Jean Matterson and Peter Hewitt both believe it is currently an attractive way to access BG's long-term, growth-oriented approach to investing internationally.

Matterson says Monks' new team focuses on stocks with the potential to double in price over five years through re-rating, earnings growth, or a combination of the two.

Hewitt says the trust has a better-balanced portfolio than BG's much more highly rated Scottish Mortgage trust, with much smaller bets on technology shares. The trust's UK weighting is only 8 per cent.


Core growth and income

Money Observer Rated Fund tickBankers IT is a large low-cost global trust with 31 per cent exposure to the UK.

Tim Cockerill likes it because responsibility for its portfolio is split between six well-regarded regional specialists, headed since 2003 by Alex Crooke, who oversees the asset allocation.

Also, the trust is committed to growing its dividend - which Cockerill says is increasingly rare in the global sector - and has done so for the past 49 years.


Core growth and income

'Law Deb', as many refer to it, combines a mainstream equity portfolio - managed by the highly regarded James Henderson - with an independent fiduciary services business that provides a substantial second source of income.

Although the majority of its holdings are UK-quoted, they are international in terms of where their revenues and profits arise. John Newlands believes the trust looks attractive on its current yield and discount.


Adventurous growth and income

Money Observer Rated Fund tickWhen Alan Borrows picked BlackRock World Mining last year, he warned that it would cut its dividend. In the event, the cut was more than he expected, but the yield remains very attractive and he thinks the current dividend is sustainable.

He says the outlook for the trust's portfolio has improved because a lot of capital has been withdrawn from the resources arena, reducing competition for the surviving companies.


Robert Burdett

Robert Burdett began managing funds of funds at Rothschild and then Credit Suisse. In 2007 he joined Thames River to help set up its multi-manager business, later taken over by F&C.

Brian Dennehy

Brian Dennehy is managing director of advisory firm Dennehy Weller. In 2012 he launched FundExpert, a fund platform for self-directed investors looking for fund research.

Mick Gilligan

Mick Gilligan is a partner in private client stockbroker Killik & Co. He is currently head of research. He analyses funds and trusts and manages the firm's multi-manager portfolio service.

Jason Broomer

Jason Broomer has more than two decades' experience in fund research and running portfolios for private clients. He runs Square Mile's managed portfolio service.

John Husselbee

John Husselbee is head of the Liontrust multi-asset team. He has 25 years of experience in managing multi-manager portfolios, including at Henderson and Rothschild.

Alan Steel

Alan Steel became an IFA in 1973, and launched his firm Alan Steel Asset Management in 1975. It now advises over 2,000 families, with more than £1 billion under management.


Alan Borrows

Alan Borrows is a senior fund manager at Liverpool-based Seneca Investment Managers, which favours a value-oriented approach to multi-asset investment.

Jean Matterson

Jean Matterson is a partner at Edinburgh-based Rossie House Investment Management, which has long favoured investment trusts for private client portfolios.

John Newlands

John Newlands has overall responsibility for investment trust research at Brewin Dolphin. It has £33 billion under management, of which over £4 billion is in investment trusts.

Tim Cockerill

Tim Cockerill is investment director of Bristol-based Rowan Dartington which has client assets in excess of £1 billion. Investment trusts have featured in its portfolios for many years.

Andrew McHattie

Andrew McHattie runs The McHattie Group, an authorised firm which publishes a specialist investment newsletter. He has been the editor of Investment Trust Newsletter since 1966.

Peter Hewitt

Peter Hewitt has run the F&C Managed Portfolio trust since 2008, having managed its forerunner, F&C Managed Portfolio Service, since 2002. He previously worked at Ivory & Sime.

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