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Investments for 2016: Citywire writers' picks

Citywire investment writers pick the funds and shares they think could weather what looks likely to be a difficult year for markets.

 
Investments for 2016: Citywire writers' picks

With China's slowing growth and volatile stock markets sending jitters around the world, a referendum on the UK's European Union membership that could take place as early as next year, and an oil price that continues plummeting, 2016 looks like it will be a challenging one for investors.

We've collated the investment views of Citywire Money writers on their picks for the year. Last year, as with many investors, our picks delivered a mixed performance. Columnist Mike Deverell takes the prize for the best, after the Miton UK Value Opportunities fund enjoyed another strong year, rising 22.7%.

Editor Daniel Grote's attempt to reap the benefits of quantitative easing in the eurozone with a hedged Europe exchange traded fund, UBS EMU 100% Hedged GBP (UC60), delivered 9.3%. Meanwhile editor-in-chief Gavin Lumsden went for the Caledonia (CLDN ) investment trust, which rose 2.4%, but at least did not lose money. Lumsden's hopes that the trust's heavy discount could narrow went unmet, with the shares still trading more than 15% below net asset value.

Perhaps the riskiest pick belonged to Dumb Investor, who plumped for the beaten-up JPMorgan Russian Securities (JRS ) investment trust. At one stage it looked like Dumbo was going to run away with it, as JRS notched up the best performance of any investment trust in the first quarter of the year. But the natural order of things soon reimposed itself, and the fund ended the year just 6.4% higher.

David Kempton's fund picks fared less well. After enjoying a stellar 2014, the Indian stock market had a largely sideways year, reflected in the 1% rise in Aberdeen Global Indian Equity . Brazil meanwhile suffered a horror show, with its stock market and currency plunging as leftist president Dilma Rousseff struggled to get the country's economy fell deeper into recession, leaving the Allianz Brazil fund down 34.7% over the year.

Here's what our writers think might do well this year.

Next: Daniel Grote 

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4 comments so far. Why not have your say?

Hotrod

Jan 12, 2016 at 21:14

Thank you Citywire for your insight, but any talk about put options, short selling, funds of funds, absolute returns etc. turns me right off. Strikes me that all these strategies do, is generate short term income for the managers to skim. There is no way to apply simple analysis to these complex instruments. All you can do is make comparisons. How would you know that you are not buying into a Bernie Madoff type Ponzi Scheme ? His split-strike conversion strategy fooled even the most respected investment gurus.

Therefore I shall stick to my own original investment knitting. i.e. continue to buy LSE quoted shares directly.

My portfolio is at present overweight UK builders / building materials. I shall continue holding what I have, however I think that shares listed on AIM could do well in 2016.

I have recently purchased: easyHotel (EZH) Advanced Medical Solutions (AMS) and AB Dynamics (ABDP)

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Hotrod

Jan 14, 2016 at 12:04

Looks like another bad day on the markets. Everything marked down across the board. How does that square with what is happening in real world UK ?

It doesn't. Lower energy prices mean lower cost of services and logistics. Infrastructure and property damage caused by floods will create a massive increase in restoration demands, which will lower unemployment further.

It's a ill wind that blows nobody any good as they say.

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David Diprose

Jan 16, 2016 at 09:16

I'm not sure that articles like this have any value. None of the writers predicted the current situation. The lucky ones will be correct. The rest will be wrong. Not even Napoleon was lucky all of the time.

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alexinexile

Jan 27, 2016 at 11:12

I found this really interesting! I agree that long term Biotech, India and Brasil all have great potential and that house builders in the UK should be strong this year. My long term star pick is still AXA Framlington Biotech. But CF Odey absolute return uk and City Financials global equity return arent half bad either.

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Look up the funds

  • CF Miton UK Value Opportunities Ret A Acc
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  • Aberdeen Global - Indian Equity D2 GBP
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  • Allianz Brazil A Acc
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  • Old Mutual Global Equity Abs Return GBP A Acc Hdgd
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Look up the shares

  • UBS ETF-MSCI EMU hgd to GBP UCITS (GBP) A-acc
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  • Hutchison China MediTech Ltd
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  • Taylor Wimpey PLC
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  • Bellway PLC
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  • Bovis Homes Group PLC
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  • M J Gleeson Group Ltd
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  • Inland Homes PLC (ILND.L)
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Look up the investment trusts

  • Caledonia Investments (Ordinary Share)
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  • JPMorgan Russian Securities (Ordinary Share)
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  • Diverse Income Trust (Ordinary Share)
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  • North Atlantic Smaller Cos (Ordinary Share)
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  • Oryx International Growth (Ordinary Share)
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  • Pantheon International (Ordinary Share)
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  • 3i (Ordinary Share)
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  • Standard Life Euro Private Eq (Ordinary Share)
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  • HarbourVest Global Priv Equity (Ordinary Share)
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  • F&C Private Equity Trust (Ordinary Share)
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  • NB Private Equity Partners SPL (Ord Income)
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  • HgCapital Trust (Ordinary Share)
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Look up the fund managers

  • Gervais Williams
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