By Tom Stevenson, Investment Director, Fidelity Personal Investing
Every year, I highlight a few funds that I feel are particularly interesting investment options in line with my general
view of the market. These are funds I like the look of, which might be worth considering for your ISA this year, but it’s
important to keep in mind they’re not a personal recommendation.While there are many factors that affect the markets, a key one will be the US election in November 2020. The
expectation is that Donald Trump will, in due course, row back from his aggressive stance on trade with China in a
bid to put the economy on firm foundations ahead of the vote. Less trade tension, continued easy monetary policy,
rising earnings and a robust jobs market should be good news for investors. So here are my four fund picks for 2020:ADVERTISEMENT
it, as investors have warmed to its balanced
portfolio in an uncertain investment environment.
Ayesha Akbar, who has managed the fund from
the outset, has done a great job of delivering
capital growth without the volatility that can be
off-putting for investors in a pure equity fund.I would be surprised if 2020 is as good a year
as the one we have just enjoyed, but I’m relaxed
about putting my own ISA contributions into these
four well-managed funds.- Liontrust UK Growth Fund
On this side of the pond, the prospect of at
least a partial Brexit resolution should combine
with low valuations and improving sentiment to
give the out-of-favour UK market a boost. The
Liontrust UK Growth Fund, managed by Julian
Fosh and Anthony Cross, searches for companies
with pricing power (the ability to charge a little
bit more) which can in turn lead to high and
sustainable profits. This looks like a solid way to
play the UK market in a year when it is unclear
whether the value or growth styles will dominate. - Fidelity Global Dividend Fund
The Fidelity Global Dividend Fund, managed by
Dan Roberts, is my next fund. With interest rates
unlikely to rise much if at all, a focus on income
has the potential to deliver good returns and I
really like this manager’s cautious approach.
A former accountant, Roberts places a heavy
emphasis on scrutinising financial statements
to ensure companies can continue to pay their
dividends through thick and thin.
3. Artemis Global Emerging
Markets Fund
If there is a recovery in the global economy, one
consequence may be a slight weakening of the
dollar as investors feel less need to seek out the
safe haven of the world’s main reserve currency. A
falling dollar is generally good news for emerging
market investments and this year I’m looking to
increase my exposure to this attractively-valued
part of the market. A relatively new fund on our
Select 50 list is the Artemis Global Emerging
Markets Fund, co-managed by a former Fidelity
analyst, Raheel Altaf. His approach is to find shares
with good growth prospects, attractive valuations
and a catalyst for a future upward re-rating. This
is a well-diversified fund, which eliminates some of
the company-specific risk that can often hurt the
performance of an emerging market fund.
4. Fidelity Select 50 Balanced Fund
Finally, I like the Fidelity Select 50 Balanced Fund.
This fund has been one of the most popular on
our platform in the two years since we launched
Important information:
Tax treatment depends on individual circumstances and all tax rules may change in the future. Investors should note that the views expressed may no longer be
current and may have already been acted upon. All these funds invest in overseas markets to a varying degree, so the value of investments could be affected by
changes in currency exchange rates depending on the exposure each fund has to those markets. The Artemis Global Emerging Markets Fund invests in emerging
markets which can be more volatile than other more developed markets. The Fidelity Select 50 Balanced Fund invests between 20-60% in bond funds. For those
funds there is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds
may fall in value. Rising interest rates may cause the value of your investments to fall. Some of the funds use currency hedging to substantially reduce the risk of losses
from unfavourable exchange rate movements on holdings in currencies that differ from the dealing currency. Hedging also has the effect of limiting the potential for
currency gains to be made. Some of the funds use financial derivative instruments for investment purposes, which may expose the fund to a higher degree of risk
can cause investments to experience larger than average price fluctuations.
The Key Information Document (KID) for Fidelity and non-Fidelity funds is available in English and can be obtained from our website at http://www.fidelityinternational.com. Fidelity, Fidelity International, the Fidelity International
logo and F symbol are registered trademarks of FIL Limited. Issued by Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority. UKM0120/26530/CSO9529/Important information:
The value of investments, and the income from them, can go down as well as up, so you may get back less than you invest. Please note that Tom’s picks are not a
personal recommendation for you. If you’re unsure about the suitability of these funds for your personal circumstances, you should speak to an authorised financial
adviser. Past performance is not a reliable indicator of future returns.Brought to you byTo find out more or to invest in my 2020
ISA fund picks, go to fidelity.co.uk or
call 0800 368 0219.FOUR ISA
FUND PICKS
FOR 2020