Adventurous investors:
Worldwide Healthcare Trust
“While still in the midst of the pandemic, a healthcare selection might seem like an obvious choice, but Worldwide Healthcare Trust has had a tough 2020 for a number of reasons. An underweight to the big Covid pharma stocks and an overweight to life sciences, biotech and China, this trust has faced some strong headwinds and underperformed its benchmark by 20%. However, the bigger picture away from the immediate Covid winners’ story is how the rapid drug development of the last 18 months translates into revolutionary new treatments looking forwards. The trusts managers, healthcare specialists OrbiMed continue to find very attractive opportunities and the issues in China have created further buying opportunities. In addition, the trust has access to private markets and has been looking to invest in the unlisted space with c7% of the trust now here. With the long-term drivers behind healthcare well established and further investment set to continue making for an exciting future ahead for drug development, this broad, diversified play on healthcare looks attractive after a period of significant underperformance.”
ASI Global Smaller Companies fund
“For adventurous investors, exposure to smaller companies is often a key part of a portfolio’s design. While big companies such as Tesla, Apple and Alphabet take the headlines, it’s often the smaller names that are the engine room of an economy and with global growth set to remain strong in 2022 this could create another strong environment for smaller companies. The ASI Global Smaller Companies fund led by Kirsty Desson and Harry Nimmo builds on their tried and tested investment process that successfully transitioned to the global scene over a decade ago. While the name implies exposure to smaller, risky names, smaller companies on a global scale means something very different and therefore many of the companies would qualify for the FTSE 100. Over half the fund is invested in the US with a significant focus on industrial and technology companies as the team seek out faster growing companies who have momentum.”
Income seekers:
Coupland Cardiff Japan Income & Growth IT
“Japan has continued to be a shining example of how to manage company balance sheets in recent years with many sat on huge amounts of cash without the millstone of enormous debts. This is translating into strong dividend growth for investors in the country at a time when income feels like a scarce commodity. The Coupland Cardiff Japan Income & Growth trust has the highly experienced Richard Aston who previously led the Japan team at JP Morgan before joining CC a decade ago. The trust is yielding 3% and impressively managed to grow this during the pandemic as the strength of Japanese companies came through. The trust does use long term gearing and therefore will be a little more volatile than peers but for those wanting a potentially growing income stream and diversification away from the traditional income companies, this trust looks interesting.”
Jupiter Asian Income fund
“For many investors who want income, the UK is the obvious place given its traditionally higher yield, but away from the UK, other regions also have strong dividend cultures. In Asia, dividends have long played a key role in shareholder returns and the Jupiter Asian Income fund looks to capitalise on this this. Manager Jason Pidcock is a cautious investor, seeking out high quality companies that have strong management and governance and a clear focus on the shareholder to ensure dividends are a key part of the company strategy. The fund is significantly underweight China, preferring the more predictable governments of Australia, Taiwan and Singapore among others. Asian companies continue to be relatively well managed with low debts, helping support the dividend which currently sits at over 3% from a concentrated portfolio that includes the likes of Samsung, Taiwan Semiconductors, Macquarie and BHP Billiton.”
