Andy Parsons, advice team manager at The Share Centre
"I’m a big fan of Standard Life UK Equity Income Unconstrained."
"Since manager Thomas Moore took charge two years ago, the fund has been a runaway winner. Previously, the fund was consistently a bottom-quartile performer, but there’s been a big turnaround since 2009. It’s a fund that isn’t on the radar of many investors, but I think it should be."
According to FE Analytics, Standard Life UK Equity Income Unconstrained has returned 83.81 per cent since Moore took over from Dominic Byrne in January 2009. Only three UK Equity Income funds have returned more in this time.
"The First State Global Resources fund has had a really tough year, but was a top-quartile performer in 2010 and 2009. Commodities are always going to go through periods of underperformance and sharp sell-offs, but investors make the mistake of focusing too much on one-year returns. This means they could miss out on significant upside by selling the fund."
"Although the commodities market has really suffered this year, it is clear that emerging markets need them in order to expand. Domestic consumption bodes well for softer commodities, while the industrialisation of countries like China, India and newer emerging markets suits harder commodities – particularly metals."
"Manager Joanne Warner focuses on large cap companies, which are the kind of stocks that will benefit from the long-term commodities story. The likes of Rio Tinto and BHP Billiton are in her top-10 holdings."
According to FE Analytics data, the fund has lost 5.59 per cent so far in 2011. In 2009 alone, the fund returned 70.43 per cent – the highest in its IMA Global sector.
Kerry Nelson, managing director of Nexus IFA
"We’ve started revising our thought process regarding commercial property. After a period of pretty poor performance, we like the look of some of the best-run funds in the sector – namely, Threadneedle UK Property, which invests in lower-quality property." "It’s actually underperformed in the last three years, but has a very good team and is the fund I’d go for when the I think the time is right to re-enter the market."
"We’ve seen some improved performance in the property sector, particularly in terms of yield, and I think we’re approaching the point where it would be worthwhile to participate. With the bond market where it is, I see property as a good alternative to investment grade bonds."
According to FE Analytics data, Don Jordison and Chris Morrogh’s Threadneedle UK Property fund has returned 0.29 per cent in the last three years, underperforming its sector average by 4.07 per cent. However, the vehicle has been substantially less volatile than the average IMA Property fund, and lost less during the financial downturn.
"M&G Recovery is another one that seems to be back in vogue. The fund has had a new lease of life in the last couple of years. It’s a massive fund and has always received inflows, but it goes in and out of fashion every few years."
"Many investors fall in to the trap of going with the 'latest and greatest'. In the past few years, special situation funds have attracted more interest, but this is a fund that investors keep going back to. The consistency of its performance speaks for itself."
FE Alpha Manager Tom Dobell’s vehicle has returned 34.64 per cent in the last three years, outperforming its FTSE All Share benchmark by 6.45 per cent. The fund has outperformed its benchmark every discrete calendar year since 2002.
M&G Recovery was among the 20 most bought funds on the Cofunds platform in June this year. Dobell’s vehicle was the only representative from the IMA UK All Companies sector.
David Coombs, manager of Rathbone Multi Asset Strategic Growth and Multi Asset Total Return
"Japan looks cheap, but still suffers from investor ambivalence. The economy isn’t in great shape, but there are great companies in Japan that can successfully exploit the demand for capital goods and the rise in the middle classes." "We are considering the Legg Mason Japan Equity fund, advised by Hideo Shiozumi. It invests in stocks that have earnings growth of 20 per cent, with a bottom-up investment style, and a growth-oriented, thematic bias. Shiozumi looks mainly for small and mid/micro cap stocks, using a process that involves quantitative and qualitative tiers."
"Its concentrated and high conviction nature means the fund will significantly deviate from the benchmark, leading to periods of extended downside/upside volatility. We like the fact Shiozumi sticks to his guns, irrespective of the market."
"We also like the unconstrained nature of the fund – there are no restrictions on sector positions or weightings towards sectors, although individual positions are capped at 10 per cent."
"We believe once Japan is back in favour, this fund will do well."
According to FE Analytics, the fund has lost 41.33 per cent in the last five years – 36.05 per cent more than its sector average. However, over a one and three year period it’s the second best performing fund in the entire IMA Japan sector.