5 Funds to Consider in 2014

Japan, emerging markets, underperforming strategies - here are five funds and investment trusts that are poised to do well this year

Charles Stanley 10 January, 2014 | 3:34PM

This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Rob Morgan and Ben Yearsley of stockbrokers Charles Stanley pick five funds to consider in 2014.

Although it was the best performing major market in 2013 Japanese equities could be re-rated further if new policies continue to achieve their objectives. In Shinzo Abe, Japan now has a Prime Minister who has the respect of both the Japanese people and his political colleagues. He has introduced much needed and radical changes, and the prospects look very promising for equity investors. GLG Japan Core Alpha (Morningstar analyst Gold Rated) and Jupiter Japan Income (Silver Rated) are our picks here as the managers should get the best out of this sector over the long term with their value based strategies. It has been a tough time for some more cautious strategies this year. For instance, Personal Assets Trust (PNL) managed by Sebastian Lyon has struggled largely due to exposure to gold and lack of exposure to economically sensitive areas such as financials.

However, we believe it is due a return to form. Although economic growth seems to be picking up, wage growth is non-existent meaning little upward pressure on inflation and even the risk of deflation. With its emphasis on capital preservation and mix of defensive, non-leveraged equities, index-linked bonds and gold we believe this is a fund to keep at the core of a portfolio for the long term.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
AS SICAV I Chinese Eq A Acc USD37.14 USD0.90
Jupiter Japan Income Acc132.92 GBP0.36
Lazard Emerging Markets B Acc305.92 GBP0.59
Man GLG Japan CoreAlpha Retail Acc A132.40 GBP0.46
Personal Assets Ord44,603.52 GBP-0.88

About Author

Charles Stanley  Share dealing on UK and international Stock Exchanges. Stockbrokers: advisory and discretionary portfolio management.

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