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A trio of collectives to help boost portfolios in the New Year
Thursday 22 Dec 2016 Author: James Crux

Do you want to add some funds to your portfolio? If so, we’ve asked a few experts to give their best ideas for funds to buy for 2017 and beyond.

The products have been suggested by AJ Bell’s investment director Russ Mould and head of fund selection Ryan Hughes.


1. Henderson UK Absolute Return (GB00B5KKCS68)

‘Over the past 12 months, the best performer in the FTSE 350 is up by more than 400% and the worst down by 60% and with the UK Government highly likely to trigger Article 50 and start the UK’s formal withdrawal from the EU, there is the potential for further volatility in the UK market,’ says Mould.

‘One way to play this may be through long/short UK equity funds which can profit from winners and losers in this environment and one of the very best is the Henderson UK Absolute Return Fund.

‘Managers Ben Wallace and Luke Newman have proved they are highly capable of navigating volatile markets and often come into their own when markets become disrupted.’


Fujiyoshida, Japan - April 24,2015 : Chureito Pagoda of Arakura Sengen Shrine stands before Mt Fuji on April 24,2015 in Fujiyoshida prefecture, Japan.


2. Legg Mason Japan Equity (GB00B8JYLC77)

‘The Japanese market had a quiet 2016 and in many respects has once again fallen off the radar of many investors,’ says Hughes. ‘The fundamentals point to an optimistic outlook as structural reform, a highly supportive central bank and attractive valuations all give reasons for investors to think again.

‘One way of playing this is through medium and small companies via the Legg Mason Japan Equity Fund.

‘Managed by the highly experienced Hideo Shiozumi, this fund is not for the faint hearted and can be highly volatile but the manager has proved time and again that when Japanese equities are in favour, he has the ability to significantly outperform.’


Polar bear on pack ice


3. Polar Capital Global Insurance (IE00B63V4760)

‘The global insurance sector is one that can benefit from rising bond yields and with the industry predominantly based in the US, a strong dollar helped by rising rates could help this fund have another strong year,’ comments Hughes.

‘The industry is cash generative, giving a nice stable outlook, while consolidation could well prove to be a friendly boost. The team at Polar are hugely experienced and this approach offers a great way to diversify from traditional US equity exposure.’

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