We asked trusted experts to recommend the best funds and investment trusts that cover different investment sectors – and included This is Money’s selection of active and passive options too.
Investors are spoilt for choice when it comes to deciding on funds and investment trusts that can put their money to work.
Funds, trusts and trackers deliver the chance to invest in almost anything you can think of, almost anywhere you want to, at a low cost and with minimal effort.
Yet, with all that choice comes a tricky task. An encounter with the list of almost 3,000 UK-based fund options on offer can be very confusing, even for an experienced investor.
The Brexit wobble is a reminder that over short periods the fund dealing might be suspended for sensible reasons
Property
F&C Real Estate Securities
Ongoing charges: 1.45%
‘F&C Real Estate Securities invests in both residential and commercial real estate companies, listed in the UK and Europe’, says FundCalibre’s Darius McDermott. ‘F&C has one of the best resourced and most experienced property teams in the business and also runs the TR Property Investment Trust, which I also rate highly. The unique way the managers use the full range of tools available to them, including by shorting unfavoured stocks, enables them to express a wider range of views and better manage risk. This is a big positive given the small size of their investment universe.’
Kames Property Income
Ongoing charges: 0.96%
‘The Brexit wobble is a reminder that over short periods the fund dealing might be suspended for sensible reasons – this is a given, and always was’, says Fund Expert’s Brian Dennehy. ‘Kames Property Income continues to have attractions in a low interest rate environment, with a yield of 4.4%. Its greatest emphasis is outside London and the South East, where decent value remains.’
Legal & General UK Property
Ongoing charges: 0.75%
‘This is a core property fund and investors benefit from access to Legal & General’s expertise’, says Architas’ Adrian Lowcock. ‘Legal & General UK Property only invests in quality assets with strong tenant covenants and leases in areas with strong underlying economies. The fund’s investment process considers both the economic outlook and property selection. The manager, Matt Jarvis, may make use of property derivatives, property securities and cash to manage liquidity within the fund.’
TR Property
Ongoing charges: 0.76%
‘TR Property trust offers a diversified exposure to UK REITS at an attractive discount with a reasonable yield’, says Canaccord Genuity Wealth Management’s Patrick Thomas. ‘Post-Brexit there is still real value with some of their holdings themselves trading at substantial discounts.’