Research firm Winterflood has released its highly anticipated list of recommended investment trusts for the year 2023. This year's list features 15 new additions and the removal of 18 funds. Winterflood's team of experts, including head of research Emma Bird, have carefully selected these trusts based on their expected ability to outperform the market in the coming year. With winter's challenging market conditions, these investment opportunities present a unique chance for investors to capitalize on discounted shares in high-performing companies.
UK Funds
Winterflood has added the £989m Murray Income Trust to their list of recommended UK funds for this year. With a long history of growing dividends and an attractively low ongoing charges figure (OCF) of 0.48%, this trust stands out as a potentially lucrative investment option. Winterflood analysts predict that its current discount of 6.9% could decrease over the coming year, making it an even more attractive investment opportunity.
The firm has also reduced its recommended UK funds from seven to five, with the abrdn UK Smaller Companies Growth, Edinburgh Investment Trust, and Lowland Investment Company being removed from the list. The remaining five options on the list are Fidelity Special Values, Mercantile Investment Trust, Finsbury Growth & Income, and Odyssean Investment Trust.
US Funds
Winterflood has added Pershing Square Holdings and JPMorgan American to its list of recommended North American funds for 2023. Pershing Square Holdings, with a portfolio value of $11.7bn (£9.6bn), has seen impressive growth of 168.7% since its launch in 2014. Winterflood analysts expect strong performance from its large-cap holdings, making it a worthy addition to the list. They even draw comparisons to Warren Buffett's Berkshire Hathaway for its fundamental analysis of stocks.
European Funds
The European Smaller Companies Trust has been added to Winterflood's list of recommended European funds for 2023. With its diversified portfolio of 125 holdings spanning various countries across the continent, this trust offers a balanced approach that is expected to fare well in the volatile market conditions of 2023. Its current discount of 17% makes it an attractive entry point for investors seeking a bargain. Winterflood analysts believe that sentiment towards Europe and the fund's relative performance record could lead to a re-rating of its shares.
Asia Funds
Winterflood has made changes to its recommendations for Asia funds, introducing Fidelity China Special Situations and Pacific Horizon Investment Trust to the list. Fidelity China Special Situations stands out for its bias towards value assets and smaller companies, setting it apart from its peers in the IT China/Greater China sector. With returns up 245.6% over the past decade, it is the best performing trust in its peer group.
Meanwhile, the Pacific Horizon Investment Trust offers investors wider exposure to Asia. Winterflood analysts appreciate its contrarian stock picking approach and its focus on metals and mining, which is expected to result in favorable returns if commodities continue to thrive.
Other Regions
In the emerging markets, Winterflood retains its recommendations for JPMorgan Emerging Markets and BlackRock Frontiers Investment Trust. Both trusts have demonstrated their ability to perform well over the long term, making them reliable options for investors.
For investments in Japan, Winterflood continues to rate Baillie Gifford Shin Nippon as the top choice. Despite a 30.5% loss last year, this trust has consistently outperformed its peers in the IT Japanese Smaller Companies sector over the past decade. Winterflood analysts believe that its focus on high-growth Japanese smaller companies, combined with its manager's expertise in selecting successful companies, will lead to significant returns in the long run.
Investors looking to make strategic investment decisions in 2023 should consider Winterflood's recommended equity investment trusts. By aligning with the expertise, experience, and trustworthiness of Winterflood's research team, investors can position themselves for success in the ever-evolving market landscape. Don't miss out on the opportunity to invest in these carefully selected trusts that are expected to outperform in the coming year.
Images sourced from Winterflood's original article.
Source: Winterflood
Source: FE Analytics
Source: FE Analytics
