Five ‘unloved’ investments worth a fresh look
By Jassmyn Goh, 18 Apr 18
Long term investors should seek out some often over-looked sectors to boost portfolio diversification, according to Morningstar Investment Management. Click through the slides below to find out which five areas it has identified as hidden investment opportunities.
Source: FE Analytics
Morningstar Investment Management’s chief investment officer for Emea, Dan Kemp, said the fundamentals of corporate Britain had been resilient despite risks coming from Brexit.
“If anything, earnings of the FTSE 100 have actually started to rebound through 2017 and early 2018 after steadily falling by as much as 20% in the five years prior. This is a long term development that must be reinforced,” Kemp said.
He noted that fundamental uncertainty was present but overhyped, and that sentiment towards multinationals had turned negative but created a contrarian opportunity.
Looking at the FTSE 100 index, returns will only benefit a long term investor with data from FE Analytics showing a performance of 28.12% for the five years to 31 March 2018 and 63.87% for 10 years.
However, for returns three years and below the index performed at -3.37% for the three years, and -2.23% for one year.