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Four great funds to buy for 2020

As we approach the New Year it is a good time for investors to think about their portfolio choices and check that they match their appetite for risk. Here are four fund ideas for specific types of investors.
Royal London Short Duration Global High Yield (BD0NHK8)
Cautious investors have benefited from strong returns this year as bonds have performed strongly. Looking ahead, the government is indicating higher spending which could well steepen the yield curve. As a result, traditional corporate and government bonds may struggle.
One alternative would be to look at short duration high yield bonds which are less correlated to interest rates and bond yields. With bonds only one to two years from maturity, these investments could protect investors from the full impact of yields increasing.
With cash rates so low, this may be a way of eking out a little extra return but it does come with some risk.
Jupiter UK Special Situations (B4KL9F8)
Manager Ben Whitmore has managed the fund for 15 years, employing a consistent approach that focuses on companies that have materially underperformed the market.
Whitmore looks for fundamentally sound companies that are unloved by other investors and priced below true value.
As a natural contrarian, the portfolio can look very different from the index which is a positive. The portfolio is currently tilted towards domestically-focused companies that may come back in the spotlight should a resolution to Brexit be found.
CC Japan Income & Growth (CCJI)
Japan continues to be a market seemingly in a constant struggle to get out of the doldrums. Beneath the headline weakness is significant corporate change which is making companies more focused on delivering shareholders returns.
CC Japan Income & Growth Trust looks to capitalise on this changing dynamic with a focus on those companies that offer stable or growing yields.
With a strong stock picking process, overseen by an experienced manager in Richard Ashton, this trust has a well-developed philosophy and process in place that is comfortable investing away from the benchmark and taking a long term view.
The trust has a 2.4% yield and sits at a small discount of 3.3% to net asset value at the time of writing.
Man GLG UK Income (B0117D3)
There are many income funds available that simply allocate to the big dividend payers in the index but this fund is different.
Manager Henry Dixon takes a multi-cap approach and also has a value bias, potentially gaining a double boost from a positive resolution to Brexit.
In addition, the manager can invest in corporate bonds if appropriate, albeit in a limited manger making this a slightly different UK equity income fund. The strategy currently yields over 5% and pays monthly making it an interesting option for income seekers.
At the time of writing, the financial services sector accounted for nearly 30% of the portfolio, industrials and energy both approximately at 14% and consumer cyclical at a little below 13%.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Editor's View
Feature
- Top performing funds of 2019
- What were the key themes for small caps in 2019?
- Big companies with big decisions to make in 2020
- All change: an unusual period for FTSE 100 CEOs
- Tracking the performance of the biggest emerging markets
- Emerging markets: Views from the experts
- Is inflation really dead and what can investors do if it isn't?
Great Ideas
- Share pick for 2020: IG Design
- Share pick for 2020: Lloyds Banking
- Share pick for 2020: Redrow
- Our 2019 picks have smashed the market with a 23% return
- Share pick for 2020: Luceco
- Four great funds to buy for 2020
- Share pick for 2020: Kainos
- Share pick for 2020: Begbies Traynor
- Share pick for 2020: Hotel Chocolat
- Share pick for 2020: Centrica
- Shares pick 2020: Wizz Air
- Share pick for 2020: Schroders