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
Another “unloved” sector is European energy companies, which according to Kemp is a relatively attractive investment proposition despite investors believing the sector is risky.
“Naturally, care needs to be taken when using it in a portfolio with correlated assets and patience is a prerequisite. However, investors should not be overly fearful of the oscillating sentiment in recent years, as the long term fundamentals remain intact,” he said.
When European energy indices were analysed using FE Analytics, the data showed that the sector did well as it did not record negative returns when the investment horizon was greater than three months.
Both the Bats Europe Energy Sector index and the MSCI Europe/Energy index recorded above 28% for the five years to 31 March 2018. The MSCI index also recorded 50.23% for 10 years.
Tags: Investment Strategy | Russia | US
