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30 Nov 2016

Experts advise which funds to capitalise on following Autumn Statement

Following the release of chancellor Phillip Hammond´s Autumn Statement, the Money Observer website recently spoke to a number of financial experts for their thoughts on the funds that investors and businesses should now invest in.

As the article notes, the Statement included downbeat predictions of slowed growth for UK PLC in the medium-term, largely due to continuing uncertainty over Britain´s exit from the EU. So could this mean new opportunities for businesses and fund managers, or does it mean funds are better invested outside of the UK?

UK opportunities

AXA Investment Director Adrian Lowcock feels that the chancellor´s plans for a ‘National Productivity Investment Fund´ will create opportunities in Britain. He explains, “the popularity of infrastructure as an asset class amongst investors suggests there should be plenty of capital available in the private sector to support additional investment into infrastructure.”

With UK inflation set to rise, government-backed infrastructure investments with in-built payout increases and predictable cash flows “are likely to attract strong demand from private investors,” he added. He recommends the John Laing Infrastructure Fund, which yields 5.3% and invests across various projects and sectors.

Global growth

Conversely, Alan Steel – director of Alan Steel Asset Management – is hedging his bets on the global growth sector. Steel notes that “value is making a comeback” and believes smaller companies hold a lot of value, with Troy Global Income and Rathbone Global Opportunities being good growth-focused alternatives.

Square Mile´s head of investment, Jason Broomer, agrees that people should be wary of UK investment, calling the British government´s finances “grim” and noting that the Brexit process is likely to upset things even further.

His global recommendations include those with “robust global franchises and solid balance sheets,” such as Fundsmith Equity, which he calls a “sound choice”.

“We don´t know what the future holds but many of these companies have been around for many decades and should continue to be with us for some time regardless of how the political situation develops,” he added.

Copyright M2 Bespoke 2016

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