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Capturing emerging yields, tracking value, buying into a boost and Alliance Trust's proposed managers

A round-up of this week's fund stories
January 19, 2017

Finding investments with an attractive income profile at a reasonable price can seem like mission impossible, but an area that has recently done well and offers high yields is emerging market debt. Personal finance writer Emma Agyemang looks at what has been driving emerging market debt and the sort of yields it offers, as well as the very high risks you incur if you invest in funds focused on this asset. She also explains what the main types of emerging markets bonds are, and the best funds with which to access them.

OTHER STORIES IN THIS ISSUE

There have been a number of signs of a return to value investing, not least among exchange traded funds (ETFs), with value focused ETFs substantially outperforming those invested in quality and low volatility stocks. Deputy personal finance editor Kate Beioley explains why value is making a comeback and which ETFs are benefitting from it, as well as the investment factors you should buy and avoid going forward. She also sets out the best ETFs with which to capture value's return.

This week's tip highlights a fund which hasn't been performing well but is invested in an area that looks set for a boost, and is run by a manager with a strong long-term record. Find out why which fund this is and why it could make strong returns going forward.

Alliance Trust (ATST) has announced the eight asset managers that will run its portfolio if shareholders approve a move to a multi-manager structure. We look who these managers are and how they run their money, as well as the cost implications for the trust.

Investors have been shunning equities funds but after 10 months of outflows November saw a move back into these, reports Emma Agyemang. She explains which types of equity funds were popular and why, as well as why you shouldn't necessarily opt for them yourself. She also looks at the individual funds investors particularly liked over 2016.

The sooner you start investing the more potential there is for you to make money, so it could be worth starting at 16 – or even younger – like one of our readers. Kate Beioley explains what steps and considerations your children (or you) should take to kick off a portfolio at a young and tender age, as well as the best tax wrappers and asset allocation structures for this. She also highlights some funds that would work well for young investors.

In our latest personal finance podcast Kate Beioley considers whether Donald Trump is to blame for the recent slump in emerging markets and how can you position your portfolio to benefit from Trumpflation. She is joined by special guest Adrian Lowcock, investment director at Architas. They also weigh up the merits of foreign currency ETFs and look at how the markets have been affecting your money.

Our podcast is now available across five different distribution channels to allow you to access it in the most convenient way. Find us on Soundcloud, Acast, Audioboom, Stitcher and iTunes.

This week's Portfolio Clinic features a couple who want to boost their retirement income with their portfolio of funds. Our experts point out that if they want to do this they need to reduce the risk and re-orientate to income, and suggest some ways to do this.

Do you have a personal finance problem? Or want to know more about something in this week's personal finance pages? If so let us know by getting in touch with leonora.walters@ft.com, kate.beioley@ft.com or emma.agyemang@ft.com.