If you’re looking for UK shares to buy today, then Alex Harvey of Momentum Global Investment Management has a couple of ideas.
Indeed, the fund manager believes that the UK market offers some fantastic opportunities today, as many stocks trade at a deep discount to international peers following the country’s recent economic and political troubles.
Here are three UK shares to buy today according to Harvey’s analysis.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
UK shares to buy now
A cheap turnaround play: Jupiter Fund Management
The fund manager’s first pick is Jupiter Fund Management (LSE: JUP).
This company is a fund management business “catering to a loyal base of retail investors.” It is also making inroads into the institutional market.
Following the acquisition of Merian Global Investors in 2020, assets under management swelled to more than £65bn. However, in recent years the firm has “found itself caught in the middle between the mega-managers and the boutiques,” and assets have dwindled.
Harvey believes the new CEO Matthew Beesley will help push the business to change. He has been reviewing the fund range and looking to cut costs in an attempt to stabilise client outflows and increase profit margins.
Jupiter looks cheap, and this is its most attractive quality. “Even a halving of the well-maintained dividend (a conservative scenario) would imply a yield of nearly 10%” Harvey notes.
What’s more, when markets do “pick up” today’s price/earnings (p/e) ratio “will look cheap.”
One of the best UK shares to buy for income: TwentyFour Income Fund
The next pick is TwentyFour Income Fund (LSE: TFIF).
This closed-ended investment company owns a portfolio of European asset-backed securities (ABS).
These securities typically pay a “floating rate” coupon, which means the rate of interest fluctuates with the base rate. As such, unlike other debt securities with fixed yields, the payouts on these ABS instruments have been rising this year.
This should “help protect capital values compared with more rate-sensitive fixed-coupon bonds,” the fund manager explains.
TwentyFour has a team of experienced analysts who know what they’re looking for when it comes to debt, so the company seems well prepared to deal with an adverse economic climate.
After recent declines the fund is now trading with a forward dividend yield of 17%. “The fund offers equity-like returns with underlying asset security,” Harvey summarizes.
Bonds are becoming increasingly attractive
Finally, Harvey recommends the exchange-traded fund (ETF) iShares £ Corporate Bond 0-5yr UCITS ETF (LSE: IS15).
This fund owns sterling-denominated investment-grade corporate bonds with a maturity of less than five years.
Only around 40% of underlying exposure is to UK-listed companies, so this is a fund with global exposure.
However, following the recent UK gilt market turmoil, the yield on this investment-grade fund topped 7%.
-
Klarna IPO: how did the Swedish fintech perform on debut?Klarna’s shares made a fast start following the BNPL company’s New York debut, but momentum waned later on. Should you invest in Klarna shares?
-
The 2% trick – how tiny pension top ups could add thousands to your retirementA third of UK adults have increased their monthly pension contributions beyond the minimum, according to new research, putting them in line for a more comfortable retirement
-
'Where to find the world’s hidden gems offering durable growth and value'Opinion Joe Bauernfreund, chief executive officer and chief investment officer, AVI Global Trust, highlights three businesses where he'd put his money
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
UK bank stocks are no bargain – here's a safer alternativeOpinion Britain's banking sector faces severe political risks. Switch into this global financials trust instead, says Max King
-
Gold mining stocks outperform gold – can it last?Opinion Gold miners are shining brighter than the yellow metal for the first time in this cycle. Enjoy the ride while it lasts, says Cris Sholto Heaton
-
The AI barons call time on the bubbleOpinion OpenAI's Sam Altman and other tech giants are warning that the AI boom is reaching dangerous territory. They may end up as the authors of their own demise
-
Three small companies with big potentialOpinion Nish Patel, portfolio manager of The Global Smaller Companies Trust, picks three small companies where he'd put his money
-
Automatic Data Processing is making big profits from organising offices – should you invest?Automatic Data Processing has established itself as a one-stop shop for managing the workplace. Is it a sound long-term investment?
-
Crypto mogul Do Kwon pleads guilty to fraudSouth Korean entrepreneur Do Kwon, who used to call critics cockroaches, faces a long spell in jail after pleading guilty to fraud relating to the collapse of two digital coins
