Investments

FE awards buy rating to M&G Global Basics and Fidelity Emerging Markets

FE Research has awarded buy ratings to 17 funds and has rebalanced the FE Select Portfolios, its suite of 15 risk-rated model portfolios. 

FE has upgraded six funds from hold to buy and added 11 new funds to its FE Select 100 shortlist, which is comprised of the best funds available to UK retail investors.
 
Component funds are selected using FE’s suite of ratings and awards, coupled with qualitative research by the FE Research team of analysts.
 
Fidelity Emerging Markets was among those awarded a buy rating in recognition of its strong performance and ability to preserve clients’ assets, despite the recent headwinds facing emerging markets.  The fund is run by FE Alpha Manager Nick Price, and has recently been awarded a five FE Crown Fund Rating. It was the top performer in its sector last year.
 
FE Research placed M&G Global Basics on hold last year following the departure of Graeme French. Having conducted due diligence on new manager Randeep Somel, the research analysts are confident that he has the ability to return this fund to its previous highs and, as a result, the fund is now rated a “buy”.
 
Rob Gleeson, head of FE Research, says: “M&G Global Basics is relatively specialist amongst global equity funds, focussing as it does on the building blocks of the world economy.  This makes it useful in providing added diversification during portfolio construction and means it should benefit if there is a sustained economic recovery.”
 
Neptune Japan Opportunities was added to the shortlist as an option for aggressive investors. 
 
Gleeson says: “This fund was one of the more successful funds in riding the rally created over the last 18 months by Abenomics.  Although one of the more volatile funds, it has become increasingly popular amongst the AFI panel of leading financial advisers and would be suitable for anyone looking for aggressive exposure to Japan.”
 
For more cautious investors looking to retain exposure to fixed income, FE favours Aviva Investors Strategic Bond.
 
Gleeson says: “Strategic bonds are becoming increasingly popular with investors and advisers due to their more flexible mandate, which is considered invaluable following the bond rally of the past few years. As one of the stronger performers in its sector, Aviva Investors Strategic Bond is an important addition to our buy list.”

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