Five funds from the experts to buy and hold

Knowing where to put your money during the pandemic has been tough. Jonathan Jones hears where the pros have been putting their cash

£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 nd Honda and camera maker Canon are re among the fund’s largest holdings.

CHINA: ‘ENJOYING A RAPID RECOVERY’ China has been one of the strongest pererforming markets this year, despite being ng the origin of the coronavirus pandemic. ic. Extremely strict and well-coordinated ed economic measures have helped speed ed 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, wellbeing, 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.

‘We are looking for fund d managers that can take e this once-in-a-lifetime opportunity in Britain’

ETHICAL: ‘ THE DO- GOODING TREND IS JUST GETTING STARTED’ Tom Sparke, of wealth management firm GDIM, is keen on ethical investing, which has taken off in the past couple of years as the health of the planet has taken centre stage. This has extended to finances, with people wanting to put their money into projects that not only make a return, but do good as well.

“While this is by no means a niche part of the industry anymore, it is still in its ascendancy and I think we will see this continue for the foreseeable future,” he said.

A popular choice among investors is the Baillie Gifford Positive Change fund, which focuses on four main areas: social inclusion and education, environmental needs, healthcare and addressing the needs of the world’s poorest people. Electric car maker Tesla is the largest holding in the fund.

BE B DEFENSIVE: ‘INVESTORS ARE EXPOSED LIKE NEVER BEFORE’ The pandemic is one cause for concern but James Calder, of City Asset Management, said there were others. In America, a small number of stocks are driving the rest of the market forward but, if fortunes reverse, investors could be hit hard. In Britain, meanwhile, there are a lot of companies that “no one wants to touch with a barge pole”. Mr Calder advised picking “something more predictable that has long-term income and social housing fits the bill”.

The £366m Triple Point Social Housing investment trust owns almost 400 projects around Britain and currently pays investors a 4.7pc dividend yield. It provides something that society needs – affordable social housing – and much of its income is effectively backed by the Government, making it extremely secure, he said.

‘Investors need to pick a fund that can pay a predictable long-term income to beat Covid’