Five funds the experts are buying to steer them through the next six months

Linda J. Dodson

Japan: ‘will the doomsayers be wrong?’

Japan’s propensity for technology is world-renowned yet for many years its economic plight has caused ­investors to shy away from backing the region.

Another value market like Britain, Japanese stocks have made a loss so far this year but have fared much better than our domestic market.

Simon Evan-Cook, of Premier Miton Investors, the asset manager, said the £1.1bn Man GLG Japan Core Alpha fund was a good option for those looking to the market for the first time. Much like the British Income fund, manager Stephen Harker and his team invest in companies that are cheap but financially sound enough to withstand tough economic conditions.

“If the doomsayers are wrong, this fund is capable of generating high returns over the coming years,” said Mr Evan-Cook. Car companies Toyota and Honda and camera maker Canon are among the fund’s largest holdings.

China: ‘enjoying a rapid recovery’

China has been one of the strongest performing markets this year, despite being the origin of the coronavirus pandemic. Extremely strict and well-coordinated economic measures have helped speed up its recovery. With the world’s biggest population, and therefore the largest number of consumers, companies that are able to adapt and seize on new trends come out on top.

The pandemic has accelerated trends that were already emerging, such as online shopping and online education. Carly Moorhouse, at wealth manager Quilter Cheviot, said one fund that tapped into this directly was the £222m Fidelity China Consumer fund.

“It invests in the more exciting, new areas that you would expect such as consumer staples, luxury items and communication technology,” she said.

Given the trend of increased wealth among the middle class in China, well-being, financials and healthcare are also key areas for fund manager Hyomi Jie. It owns e-commerce giant Alibaba and has a 3pc stake in insurer AIA.

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