Rathbones: Deflation in the UK is 'likely in the coming months', and how bond investors can gain from it
UK Inflation is likely to enter negative territory in the coming months, but there are several bond funds that offer investors protection from the threat of deflation, according to Bryn Jones, head of fixed income at Rathbone Unit Trust Management.
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They are known as the ten-baggers, the thimbleful of stocks from across the range of over 2,500 listed companies in the UK which have the capacity to make the savvy investor ten times their money in a comparatively short space of time.
It’s a fact that will not have escaped the attention of regular readers that some AIM-quoted shares are exempt from inheritance tax.
The latest fundraising for the Downing One Venture Capital Trust (VCT) offers investors the chance to achieve genuine diversification, according to Jason Hollands, managing director at Tilney Bestinvest.
Alex Wright, manager of the Fidelity Special Values investment trust, as well as the giant Fidelity Special Situations fund, has outlined the FTSE 100 stocks that he believes are trading at cheap valuations relative to their own history and have ‘significant potential’ to generate gains for investors in the coming years.
The falling oil price will be most profoundly felt by the general public in the UK at the petrol pumps as fuel costs fall, and will deliver gains to a suite of UK companies, according to Laith Khalaf, senior analyst at Hargeaves Lansdown.
Standard Life Investments: Rio Tinto's problems mean it's years away from being an attractive income investment
Thomas Moore, manager of the £781 million Standard Life UK Equity Income Unconstrained fund, which has returned 108 per cent over the past five years compared with 78 per cent for the average fund in the IA UK Equity Income sector, has revealed that he has sold all of his shares in mining giant Rio Tinto (LON:RIO).
Gervais Williams, the veteran UK equity income investor who currently manages the Miton Multi-Cap Income fund and the Diverse Income investment trust, amongst other mandates, has outlined for What Investment the reasons that he has no investments in the largest UK oil companies or supermarkets.
Mark Slater, manager of the best and second-best performing funds out of more than 270 funds in the IA UK All Companies sector in 2014, and manager of the tenth-best out of more than 80 funds in the IA UK UK Equity Income sector last year, intends to continue to swerve investments in what he calls the ‘traditional’ UK banks for the time being.
Income investors should not be distracted by the recent positive share price performance of supermarket giant Tesco, and instead consider alternative stocks to generate income, according to Job Curtis, manager of the £1 billion City of London Investment Trust.
While the long-term capacity of the central bank policy known as QE to deliver sustained improvements to the economies in which it is deployed is debatable, the instigation by the European Central Bank (ECB) of its own QE programme should be beneficial for Eurozone equities, according to Laith Khalaf, senior analyst at Hargreaves Lansdown.
Mark Wharrier, co-manager of the BlackRock UK Income fund, which is the sixth best performing out of 87 funds in the IA UK Equity Income sector over the past 12 months, has disclosed the three stocks that he favours for UK income investors in the current climate.
Whilst UK equity investors have experienced a tumultuous start to 2015, the fall in the oil price will lead to improved prospects for developed equity markets in the coming year, according to a host of top performing fund managers.
John Ventre, manager of more than £2 billion of assets at Old Mutual Global Investors, believes that while there is rapid change occurring within emerging markets, China could be the world’s best investment in the coming years.
The media is currently rife with reports of a dramatic increase in the demand for rental properties, making it the perfect time for first-time investors to get involved in property for buy-to-let purposes. It is important however to get the process running smoothly by planning ahead, and investors should consider some of the key points below before committing themselves.