You are here: Home - Investing - Experienced Investor - News -

The investment trusts tipped for outperformance in 2016

Written by: Adam Lewis
Broker firm Winterflood has unveiled a model portfolio of 32 investment trusts it expects to outperform in 2016. The list includes Neil Woodford’s Patient Capital trust and Fidelity Special Values.

The firm predicts these 32 investment trusts will outperform on a 18-24 month view.

The Winterflood analysts have had some past success in picking winners.

Last year the firm recommended 36 investment trusts and 25 of them outperformed in share price terms against their respective benchmark indices.

The 2016 list of funds sees some 19 changes to 2015’s recommendations, and Simon Elliott, an investment analysts at the broker, says the selections do not reflect any particular macroeconomic views.

So who makes the list?

Within the UK equity portion of the portfolio it is recommending Alex Wright’s Fidelity Special Values and Woodford’s Patient Capital trusts from the AIC UK All Companies sector. Its favoured funds from the UK Equity Income sector are Edinburgh Investment Trust and Temple Bar, while from the UK Mid & Small Cap peer group it picks out MercantileInvesco Perpetual UK Smaller Companies and River & Mercantile UK Micro Cap.

For exposure to international equities Wins recommends two Baillie Gifford investment trusts, Monks and Scottish Mortgage. Despite some recent underperformance, it also picks out Murray International based on its longer term performance and its yield of 6%.

Within Europe it has selected Jupiter European Opportunities and TR European Growth, while its pick in Japan is Baillie Gifford Japan and for the US, the JPM American and Gabelli Value Plus trusts get the nod.

For Asian exposure Wins has opted for the Asian Total Return investment trust, managed by Schroders’ Robin Parbrook and King Fuel Lee. Its favoured emerging markets picks are BlackRock Frontiers and JPM Emerging Markets, which are unchanged from its 2015 recommendations.

In terms of specialist funds, Wins tips Allianz Technology and Worldwide Healthcare, which is managed by OrbiMed. Elliott also sees the potential for value for private equity investment trusts in 2016 and within this space Wins favours the HGCapital Trust and Standard Life European Private Equity.

The City Merchants High YieldJPM Global Convertibles IncomeTwentyFour Income Fund, Edinburgh Dragon CULS and Real Estate Credit Investments Preference Shares trusts make up Wins bond fund recommendations, while in property its preferences are Standard Life Investments Property Income and TR Property.

Lastly are its three recommendations for hedge funds and alternative exposure and the trusts topping the bill in this space are: 3i InfrastructureThird Point Offshore and the Battle Against Cancer Investment Trust (BACIT).

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week