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%.
-
MoneyWeek celebrates 25 yearsMoneyWeek is 25 and continues to help readers make, keep and spend money every week
-
Pensions IHT reform: major changes needed says former ministerExperts are calling on the government to make the system for applying inheritance to pensions ‘more effective, efficient and humane’
-
The Stella Show is still on the road – can Stella Li keep it that way?Stella Li is the globe-trotting ambassador for Chinese electric-car company BYD, which has grown into a world leader. Can she keep the motor running?
-
Global investors have overlooked these solid stocks going for growthOpinion Nisha Thakrar, investment specialist at Nedgroup Investments, selects three undervalued stocks with long-term growth potential
-
LVMH is set to prosper as the wealthy start shopping againAfter two years of uncertainty, the outlook for LVMH is starting to improve. Is now a good time to add the luxury-goods purveyor to your portfolio?
-
Japan is still rising to new highs – here's how to investOpinion Political ructions in Japan are no obstacle to gains, and the return of inflation may even benefit stocks, says Max King. What is Japan doing right?
-
Investors need to get ready for an age of uncertainty and upheavalTectonic geopolitical and economic shifts are underway. Investors need to consider a range of tools when positioning portfolios to accommodate these changes
-
Investing in UK universities: how to spin research into profitsUK universities are a vital economic asset, but they are also Britain's 'equivalent of Gulf oil.' There are opportunities here for investors
-
AI is a bet we’re forced to makeIt’s impossible to say yet if AI will revolutionise the world, but failure would clearly be very costly, says Cris Sholto Heaton
-
The MoneyWeek Wealth Summit 2025: how to invest for a volatile eraMoneyWeek's 25th birthday conference’s agenda offers investors a wide array of compelling themes
