The experts' top 10 investment picks for 2009
It takes a brave investor to put money into stocks and shares after the carnage that has taken place in 2008.
But for those individuals ready to tuck away a bit more money for the future, Times Money has come up with a list of ten funds to buy in 2009.
We asked ten investment experts for one recommendation each, with no restriction on the type of fund or the risk level. Here are their choices.
1. M&G Strategic Corporate Bond
chosen by Brian Dennehy, of Dennehy Weller & Co
Mr Dennehy says: ”It is managed by Richard Woolnough, who is one of the very few people who saw what was going to happen in the financial markets last year. Just as he was ahead of the game in identifying the problems, he is now set to lead the way in spotting the opportunities for recovery.”
2. Cazenove UK Absolute Target
the pick of Tim Cockerill of Rowan & Co
“It is run by the very experienced Tim Russell," says Mr Cockerill. "His investment process, based on the business cycle, looks absolutely spot on for today’s times.”
the recommendation of Mark Dampier of Hargreaves Lansdown
He says: “This is essentially a bet on the expertise of Philip Gibbs, the fund manager. He has done well in the recent market turmoil by having a relatively large amount of his portfolio in bonds and cash and I trust him to make the right calls when the market turns upwards.”
chosen by Darius McDermott of Chelsea Financial Services
“This fund is a bet on the spot price of commodities," says Mr McDermott. "They have fallen heavily in recent months and I believe they are oversold and due for a bounce back.”
5. JO Hambro UK Opportunities
the choice of Jason Day of Allenbridge Group, who says:
"The manager, John Wood, holds a concentrated portfolio of about 30 to 40 stocks and aims to add value through a combination of top-down analysis of general themes and trends plus bottom-up research of quality individual stocks.”
recommended by Stephen Marriott of Bestinvest
Mr Marriott says: “This is a fairly defensive fund which is well-positioned for today’s volatile times, with an emphasis on large-cap stocks and very few financials. Adrian Frost, the manager, is very experienced and knows how to limit the damage in bear markets.”
7. North Atlantic Smaller Companies investment trust
picked by Mick Gilligan of Killik & Co
“The trust aims to buy into companies and bring about change where the existing management or capital structure are not working well," says Mr Gilligan. "The fund manager owns 20 per cent of the fund so is highly incentivised to perform well, while the trust itself trades at a discount of 40 per cent to net asset value.”
the choice of James Davies of Chartwell Investment Management, who says:
"It is run by Richard Woolnough, M&G’s star bond manager, yields about 4.5 per cent and has the freedom to hold up to 20 per cent in equities. With interest rates likely to remain low in 2009 income will be at a premium for many investors and this fund offers a diversity of income not provided by more traditional bond funds.”
9. F&C Commercial Property investment trust
the pick of Dennis Hall of Yellowtail Financial Planning
Mr Hall says: "The fund has an attractive portfolio of properties and is trading at a big - 30 per cent - discount to net asset value. Unlike unit trusts, investment trusts do not have to sell properties when investors want to cash in their shares."
10. Murray International investment trust
recommended by Roddy Kohn of Kohn Cougar
"This is a global trust, whose manager, Bruce Stout, is free to back his conviction that Asia and Latin America will produce better earnings and dividend growth than the heavily indebted US and UK," says Mr Kohn.
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Ten people who predicted the financial meltdown
The 20 golden rules of investment
The 10 best stock market investments ever
The 10 shares that went from hero to zero
The world's 10 wealthiest politicians
The 10 biggest stock market crashes of all time
The 10 most decadent dictators
The 10 worst property investments ever
The six safest places for your savings
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Good times are good
bad times are better
Posted by: S.Venkateshwaran | 13 Jan 2009 10:16:03
Thank yuop for nice tips but pelease p;ut money in gold instead for safeness!! Am concern also that some tips above not ethical so could hrut people in third world like india or enviroment, no??
Posted by: Shabba | 13 Jan 2009 10:16:03
I have just one top investment tip for 2009 not ten:
Avoid stock markets like the plague.
Posted by: Yorkshireman | 14 Jan 2009 16:50:53
Anyone who still listens to so called financial "experts" must be suffering from short term memory loss or perhaps stupidity. Financial experts and bankers are now lower on the "bottom feeder" scale than the police, solicitors and estate agents.
Posted by: nyb | 19 Jan 2009 14:41:24
Look to the 'experts' now for advice.
Can the Times publish this without a wry smile?
You'll forgive me if I take my financial advice from Jon the expert of everything (can be found propping up the bar of the Dirty Duck, Birmingham)?
Posted by: Dave | 22 Jan 2009 12:12:08
Gold is the place to be now and for a while yet, don't listen to the above advice from the........ 'experts'............lol
Posted by: Henry | 24 Jan 2009 22:16:00
Isn't it interesting that all the so-called 'tips' from fund managers are for other funds? Like many others, I am heartily fed up with paying fund managers to lose my money for me (and charge their salaries to me and other mugs for the privilege). Most of them are little better than useless, and I do NOT intend to subsidise their - or their pals' - lifestyles...
Posted by: andrew mashkov | 27 Jan 2009 07:28:46
One tip, DANGER, DO NOT TOUCH, TOXIC!!
Anyone stupid enough to buy into these funds at this point in the cycle deserves to loose money. There is a long way to go yet, hold cash and don't even think of coming out to play any time this year... At the earliest things will start to improve Q1 or Q2 2010 and the "upturn" will be so slow and gradual because of the debt burden, you might as well wait for it to start before investing.
These so called experts have a vested interest in using your cash to test the market well before they dive in with. The fool-hardy will get shaken out of the market prety quickly as the sharks are out there waiting, let them feast on some other poor soul, i'll do my swimming after feeding time...
Jim
Posted by: Jim | 27 Jan 2009 23:27:54
In a recent TV program a group of amateur traders were to lose less than professional hedge fund traders so what makes the pros feel they can predict the market. The housewife in the program was the best performer of the group. The volatility of the stock market and the reckless behaviour of the bankers has a lot to do with the crash I suspect. It is well known that many of the traders are young tostesterone driven young men who have little imagination or concern about consequences of their reckless behaviour. Insurance companies know this, after 25 premeiums drop drastcally for young male drivers. Just think we leave these imature traders to play fast a lose with our pension funds. We need more judgement not traders who behave like teenagers on a games consul.
Posted by: Paul Perry | 30 Jan 2009 13:21:39
@Shabba - And all gold is mined and refined ethically? Don't make me laugh..
Posted by: Luke | 4 Feb 2009 10:42:25
I would be interested to know how much of their own money the tipsters have invested in their so called 'sure thing'. Perhaps next time the Times publish this type of article they could ask their contributors to put their money where their mouth is...presumably most of the tipsters have been made redundant by now anyway so no doubt the severance package will be invested in accordance with their advice in any case.
Alternatively it could be that they are just mates with the fund managers they tip. Stocks are for lunatics at this stage....
Posted by: Simon Smith | 18 Feb 2009 18:36:10
Investment expert is an oxymoron - like help desk or customer care. There are no financial experts - they are just chancers in expensive suits.
Posted by: Al | 2 Mar 2009 19:43:39
THE FERRARI FACTOR
Totally agree. If you invest in these funds you have to pay for the "ferrari factor". That is the fees and wages of these "superstar" fund managers.
It is well known that most of these managed funds underperform basic tracker investments when the fees are taken into account(and a great deal of the time before fees are taken into account)
I do not intend to subsidise their lifestlyles. Why should you?
Posted by: scott | 13 Mar 2009 09:01:29
Investing in funds? Must be joking! The three things to buy now are krugerrands, a reliable shotgun and a large supply of tinned food. Think of me when the riots start! =)
Posted by: Alx | 20 Mar 2009 09:41:21