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Written by: Emma Wall | Hargreaves Lansdown
We’ve tried to pick something for everyone in our five funds to watch in 2022. Income is always a focus for our clients, year in, year out, so we’ve opted for two funds invested in the UK and globally to provide a diversified source of dividends. Increasingly, managing environmental, social and governance risks are a priority for our investors, so there are two responsible investment funds on the list too. Emerging markets offer opportunities for long term growth, and finally, if you’re risk averse and you don’t have the time or inclination to build a portfolio yourself we’ve picked a multi-asset fund which aims to beat inflation – topical for 2022.”
Pyrford Global Total Return
The team behind the Pyrford Global Total Return Fund invest flexibly, but aim to keep things simple by focusing on a mix of shares, government bonds and cash, investing in companies across the globe, with the option to invest in emerging markets.
Artemis Global Income
Jacob de Tusch Lec, along with his co-manager James Davidson, scour the globe for companies they think can earn plenty of cash that can be used to pay dividends, looking beyond the usual names that make up many global income portfolios, and often investing in out-of-favour companies at attractive prices, such as those that are more sensitive to the health of the economy and those lower down the size spectrum, including higher-risk smaller companies.
Trojan Ethical Income
Hugo Ure, the fund’s manager, doesn’t invest in companies deemed unethical, such as those with significant involvement in armaments, tobacco, and fossil fuels, although the fund is still diversified across a range of industries, with the manager tending to find opportunities in consumer goods, healthcare and business software firms. This fund could bring diversification to an income-focused portfolio or be a good addition to a responsible investment portfolio built to provide income.
Legal & General Future World ESG Developed Index
Legal & General Future World ESG Developed Index invests across developed stock markets while being mindful of ESG issues, focusing on sectors such as technology, pharmaceuticals and financials. Given the focus on developed markets it could help diversify funds focused on emerging markets, and is a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way.
JPMorgan Emerging Markets
JPMorgan Emerging Markets, managed by experienced investors Leon Eidelman and Austin Forey, is well-placed to take advantage of the changes taking place across these markets, although investing in emerging markets comes with risks, especially as their political and regulatory environments are less evolved, or different, than developed markets, creating more volatility than regulated markets.