British is BEST – UK shares are ‘great value’ after Brexit and may SOAR in 2022 – Express

The FTSE All Share index has returned 13 percent year-to-date, despite global economic uncertainty and Covid lockdown concerns. Now experts say there could be more action to come next year.

Despite this years success, UK shares remain relatively good value compared to many countries.

That explains why US private equity companies are falling over themselves to snap up British companies at bargain prices.

Rising inflation is a worry as this could cut consumer demand and business profitability, but its not all bad news.

The UK stock market remains cheap and unloved despite this year's success, said Alex Wright, portfolio manager of investment fund Fidelity Special Situations.

FTSE shares are good value and the countrys economic future looks promising. The removal of Brexit uncertainty and the countrys swift vaccination rollout have both contributed to the improved outlook.

Wright said the final shudders of the pandemic should work their way through the global economy in 2022. The risk is the arrival of a yet more dangerous variant.

Stock markets will continue to be volatile in the months ahead, said Darius McDermott, managing director of investment platform FundCalibre.

Until we know more about the new variant, global markets will go up and down depending on whether we get good or bad headlines.

McDermott agreed that the UK stock market offers some of the best value in the world right now cheap.

Private equity and overseas companies are snapping up British firms, and so should UK investors.

He tipped Threadneedle UK Equity Income, AXA Framlington UK Mid Cap and Jupiter UK Smaller Companies as funds to consider.

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Alternatively, Ninety One UK Alpha makes a great core fund while Fidelity Special Values consistently beats the FTSE All Share.

McDermott also suggested holding some gold and silver to hedge against central banker mistakes, as they battle to support growth and fight inflation.

Jupiter Gold & Silver or Ninety One Global Gold can be bought tax free inside a stocks and shares Isa, he said.

McDermott said financial stocks such as banks could also benefit if interest rates rise, as this will allow them to make greater margins when lending money.

GAM Star Credit Opportunities or Jupiter Financial Opportunities could both climb if he is correct.

He also suggested investing in mining stocks as the world transitions to a cleaner economy. "We need a whole load of metals to get electric vehicles on the road and Id consider BlackRock World Mining Trust.

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For investors seeking higher yields to protect them income against rising inflation, McDermotts fund tips are: Man GLG High Yield Opportunities, which currently yields 5.59 per cent a year, and Baillie Gifford High Yield Bond, which yields 4.40 per cent.

These are far superior returns to cash.

Artemis UK Select was the best performing UK fund over the past 12 months, up 56.4 per cent, according to research from Tilney Investment Management Services.

Fidelity Special Situations grew 51.7 per cent, and with TM RWC UK Equity Income not far behind.

Scottish Mortgage Investment Trust, the Vanguard LifeStrategy range of passive trackers and Fundsmith Equity remain highly popular investment fund choices, figures from Interactive Investor show.

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British is BEST - UK shares are 'great value' after Brexit and may SOAR in 2022 - Express