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Four fund picks for a championship winning portfolio

Joanna Faith
Written By:
Joanna Faith

Ahead of the start of the 2016 European Championships on Friday, Andy Parsons, head of investment research at The Share Centre, picks four funds that provide investment opportunities across the UK and Europe that would make his dream team.

The key to any successful football team is to have a strong spine, from the defensive nature of the goalkeeper right through to the flair and excitement of a slightly more volatile forward. The same mantra could be said of investing. Based on that premise, we believe the following four funds could position investors with a championship winning formula:

Henderson Fixed Interest Monthly Income fund – The Keeper

A bond fund managed by a highly respected team, with a yield of just over 5%

In some respects, the goalkeeper could be described as the ‘Hart’ and soul of the team. It’s all about being able to rely upon, as well as seek safety from, this position. We believe this debt based fund, through strong collection and distribution provides this. For those seeking additional income, the assurance of receiving this consistently on a monthly basis, should provide an investor with some degree of confidence.

Woodford Equity Income fund – The Central Defender and Skipper

Predominantly a UK equity income fund, delivering an historic yield of c.3.7%

The central defense is where you want your most trusted and reliable player, someone who is dependable and is prepared to roll their sleeves up when the going gets tough. Investors continue to want to benefit from the expertise and knowledge of this English ‘Rose’ and one of the industry’s most highly respected fund managers, so this fund will most certainly fit the role. While predominantly UK focussed, the fund does do the odd dive into Europe.

BlackRock Continental European Income fund – The Midfielder

A European equity income team that currently delivers a yield of c.4%

The midfield is often seen as the engine room. The part of the team that is dynamic, providing width and diversification, while all the time having good distribution. This fund will therefore not be a ‘Dier’ decision as it could provide investors with the opportunity to benefit from the creativeness and wisdom of a reliable management team who scour Europe for prospects.

Schroder European Alpha Income fund – The Striker

A European equity income fund that currently yields c.3.2%

While experience in the team is key, flair and excitement is just as important.  Teams will always seek to identify rising young talent who have the potential to consistently deliver and who have plied their trade coming through the ranks, much like ‘Rashford’. This fund has done exactly that furthermore, it will seek to exploit opportunities and the manager will vary his style to accommodate the current situations with which he is faced. Like a shot on target, identifying the best opportunities and when to strike/invest is crucial for delivering a successful result.