Shares & trading | 29 Aug 2014
The announcement from supermarket giant Tesco this morning that it is slashing its dividend by 75 per cent, and is unlikely to hit its profit forecasts for 2014, means that shares in the retailer are a definite sell, according to Richard Hunter, head of equities at Hargreaves Lansdown.
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Sarah Emly, co-manager of the £432 million JP Morgan Claverhouse Investment Trust, has outlined the UK stocks which she believes represent value for income investors amid the current market volatility.
F&C: A period of 'uncertainty' will hit commercial property investors this year, but the longer-term picture is bright
Richard Kirby, high-performing manager of the £1.2 billion F&C Commercial Property Trust, believes that while investor ‘senitment has improved' in the commercial property market, it is likely that returns will be lower for the second half of this year than they were in the six months to June.
James Thomson, manager of the Rathbone Global Opportunities fund, has – for the first time in a decade – begun to invest in pharmaceutical companies, as he feels that the investment case has ‘changed dramatically’.
Eminent fund manager Nick Train, whose Finsbury Growth and Income Trust (LON:FGT) has returned 529 per cent since 1995, compared with 275 per cent for the average trust in the AIC UK Equity Income sector, has nominated the stocks he believes will continue to grow their dividends materially in the coming years.
Investors should ignore the ‘myths’ that surround gold as an investment and not buy at the current level, despite the fact that the asset class is trading at 33 per cent below its peak valuation of just three years ago, according to Brian Dennehy, managing director of FundExpert.co.uk.
The wave of announcements this summer from companies disclosing their results shows that investors should be looking to Japanese equities, and shunning European companies as the year progresses, according to Simon Edelsten, manager of the Artemis Global Select fund.
Private equity investment trust HgCapital (LON:HGT) has been able to revalue some of its assets upwards by 11 per cent, and pay a special dividend of 19p per share.
While the performance of the £6.3 billion M&G Recovery fund has been poor, investors should stick with it, according to Simon Evan-Cook, multi asset investment manager at Premier Asset Management.
With A-level result recently out and the annual salvo survey’s around student debt published, there has understandably and rightly been plenty of media attention on the ways parents, guardians and grandparents can save for children. Expect more of this when the Junior ISA reaches its third anniversary on 1 November.
Alex Wright, manager of the Fidelity Special Situations fund and the Fidelity Special Values investment trust, believes that while investors ‘have to work harder’ than usual to find value in the present market, a number of the very largest companies in the FTSE 100 are particularly cheap.
Investors with a portfolio containing global funds are likely to find that their Japanese holdings have been the ‘laggard’ this year, but investors should stick with the country, according to Tony Lanning, manager of the JP Morgan Fusion funds range.
Star UK equity income fund manager Jeremy Lang, whose Ardevora UK Income fund has returned 56 per cent since launch in 2011, compared to 39 per cent for the IMA UK Equity Income sector, has revealed that TSB is the only UK bank in which he would invest.
The healthy dividend yield and mixture of exposure to both debt and equity means that the Aberdeen Latin American Income Trust offers investors ‘a unique proposition’, according to Charles Tan, investment trust analyst at Cantor Fitzgerald.
A new investment vehicle fronted by former England football manager Terry Venables ‘should not be marketed to private investors as it is not suitable for them’, argued Jason Hollands, managing director at Bestinvest.