Fund tips for the age of Donald Trump


Last year investors were subjected to political uncertainty and markets taking a roller-coaster ride.

As a result, people attempted to diversify their investments across many regions and sectors.

Data from Fidelity, the fund shop, on the most popular funds purchased in 2016 saw Terry Smith’s Fundsmith Equity top the list, as investors flocked to a fund that invests in companies across the globe.

This year has already seen Donald Trump’s inauguration and sterling fall amid speculation about how the UK will exit the European Union, and more uncertainty is on the way.

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Later this year we will see the impact of Mr Trump’s policies, further elections across Europe, the developing relationship between Russia and the US and the triggering of Article 50 for Britain.

There is a bewildering choice of funds and only a small proportion are worth considering. To help you, Telegraph Money has compiled a list of the top funds across every sector to help navigate you through 2017.

These are based on expert recommendations, funds we have tipped in the past, and funds relevant to particular trends this year.

Both “active” funds, run by asset managers taking calls on the companies that will outperform, and “passive” funds that track the market, have been included.

Within “active” funds we look at both funds and investment companies, while in “passives” we look at trackers and exchange-traded funds.

This is not a list of recommended sectors, or a list of funds we think are guaranteed to go up. These tips are best used to help construct a diversified portfolio.

Charges are the ongoing charge figure: the investment shop through which you buy the fund will levy an additional fee.

We consulted Mark Dampier of Hargreaves Lansdown, Darius McDermott of Chelsea Financial Services, Gary Potter of F&C Asset Management, Andy Parsons of the Share Centre, Brian Dennehy of Fund Expert, Ben Willis of Whitechurch Securities, Simon Evan-Cook of Premier Asset Management, Ryan Hughes of AJ Bell, Adrian Lowcock of Architas, John Husselbee of Liontrust Asset Management, and Winterflood Securities.

UK shares

  • Man GLG Undervalued Assets – 0.9pc charge

This fund invests in assets that have fallen out of favour, seen stock price falls and appear undervalued. It was tipped by seven of the experts. With America having increased interest rates and expected to make further rises, and global growth likely to rise, a “value” approach such as this is poised to do well.

  • Old Mutual UK Dynamic Equity – 1.1pc charge

Luke Kerr has managed this fund since 2009, and it invests in 40 to 60 medium-sized British companies. The fund has the ability to “short sell” – profiting from a share price fall – which the manager said is used to protect against large falls in the market.

  • Marlborough UK Micro Cap Growth – 0.8pc charge

This fund invests in many smaller British firms. The theory is managers can hunt out businesses whose share price will rise where others have not spotted them in this less-researched area of the market. Manager Giles Hargreave has many decades of experience.