■ Babson European High Yield Bond
European default rates are low and should stay low thanks to the accommodative central bank. Combined with attractive spreads over government bonds, this makes European high yield an attractive investment. Babson has a large team and sees most value in secured bonds.
Category: Multi Asset
■ JPMorgan Global Macro Opportunities
This multi-asset absolute return fund accepts a higher degree of volatility than is the norm for similar funds. It also has a strong thematic approach to portfolio construction. In an era of highly correlated bonds and equities and low cost of capital, both these attributes make the likelihood of satisfactory uncorrelated returns more likely.
Category: Specialist
■ Wood Street Microcap Investment
UK micro caps are a valued part of the UK market. This space is pitted with potential landmines but this fund is run by one of the UK’s largest specialist teams, with an investment process led by the experienced Ken Wotton who selects only the highest quality stocks.
■ Polar Capital Biotechnology
Biotechnology is an extremely exciting part of healthcare, with a secular growth story that should be relatively immune to the many global macroeconomic headwinds. The sector has been caught up in the recent global sell-off and the opportunities for manager David Pinniger, who is an expert in biotechnology, are excellent – although expect volatility.
