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The best of British

Make your investments fly high by picking the best of British: Why top fund managers believe future could be rosy for UK shares

By ROSIE MURRAY-WEST, FINANCIAL MAIL ON SUNDAY

PUBLISHED: 21:58, 11 July 2020 | UPDATED: 08:18, 13 July 2020

Investors who have flown the Union Flag over their portfolios this year have endured some stomach-churning turbulence as the UK stock market has fallen sharply and then recovered quickly. But some leading experts argue it will pay investors to hold tight.

Among them is Nick Train, of investment house Lindsell Train, one of the country’s leading fund managers. He strongly supports the view that the future for UK equities is a rosy one…

WHY THERE IS VALUE IN THE UK MARKET

Nick Train is not a lone voice. Jason Hollands, a director of wealth manager Tilney, says the UK stock market represents ‘good value’ – having been depressed by widespread dividend cuts.

He explains: ‘If you look at the value of UK equities compared with company earnings, they are trading below their long-term average…

WHY SMALLER FIRM FUNDS ARE A GOOD PICK

James Carthew, head of investment company research at investment trust scrutineer QuotedData, believes ‘investing in smaller companies can be risky, but over the long term the rewards are higher’.

He recommends investment trust BlackRock Throgmorton, which ‘buys well-run companies with strong, defensible business models’. The trust has generated a return of 10.7 per cent over the past three months and 0.6 per cent over the past year…

Carthew suggests brave investors should also look at investment trust Herald

Although it has exposure to US, European and Asian stocks, its portfolio is heavily skewed towards UK technology stocks and is one of very few funds currently backing British success stories in this sector. Investment trust Syncona is another option, investing heavily in the British biotech industry.

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