The manager of the Fidelity Moneybuilder Growth fund believes the fast-approaching ISA deadline is an ideal opportunity to tap into undervalued quality blue chips, which can offer investors both stability and growth potential over the long-term – even if global growth remains lacklustre. "The long-term earnings and dividend-growth prospects of industry winners should be an attractive home for investors' money," he said.
"In the UK, we are fortunate that so many of the world's global winners are listed here. Such companies are able to fund themselves and can drive growth through marketing and research."
"Strong brands give them pricing power and the ability to pass on the impact of rising input costs."
Here are five UK companies Griffin is backing for long-term success:
Lloyds
"Despite strong share-price performance in 2012, Lloyds continues to trade at a very depressed valuation," said Griffin.
Performance of stock vs indices over 5yrs
Source: FE Analytics
"Peripheral European exposure is being rapidly reduced and operational performance is improving."
"The UK banking market is cyclically depressed given low interest rates and low corporate and retail loan growth."
"However, this will recover over time, and with over 30 per cent market share, Lloyds will be a significant beneficiary of this recovery."
According to FE data, 55 funds hold Lloyds in their top-10. Among these is Sanjeev Shah’s Fidelity Special Situations, which has been one of the biggest beneficiaries of the stock's recent rally. Shah has 6.8 per cent in the company.
Schroder UK Alpha Plus, Jupiter UK Growth and Standard Life UK Equity Unconstrained also hold Lloyds in their top-10.
The stock is the only one of the five not currently paying a dividend.
Rolls Royce
"Rolls Royce supplies engines to the aerospace, energy and marine industries," Griffin continued.
"Its TotalCare service package is becoming an increasingly significant part of profitability and provides consistent and reliable cash-flow generation."
"While defence spending is a risk, the civil aerospace and marine businesses are performing well and Rolls has strong market share. As its market share grows, so does its ability to sell its TotalCare package."
The FTSE 100 company is a top-10 holding for 40 funds in the IMA universe. These include the five crown-rated Unicorn Outstanding British Companies and IM Matterley Equity funds.
Rolls Royce is currently yielding 2 per cent. Its share price has grown aggressively over the last decade, up by almost 2,000 per cent, according to FE data. However, Griffin still thinks it is undervalued given its earnings potential.
GlaxoSmithKline
"Glaxo's shares have underperformed over a number of years on fears over the impact of patent expiries and generic competition to past blockbuster drugs," explained Griffin.
Performance of stock vs indices over 10yrs
Source: FE Analytics
"However, given Glaxo's strong diversification and emerging markets strategy, we feel that the shares are significantly undervalued and give zero value to what could potentially be a very strong pipeline of new drugs."
"With the potential to unlock value through a spin-off of its consumer business and a well covered and growing dividend, we think this represents a compelling long-term investment opportunity," he added.
Glaxo is one of the most popular stocks among UK managers, appearing in the top-10 of 365 funds.
Neil Woodford is one of its biggest admirers, including it as a major holding in his Invesco Perpetual High Income, Income and Distribution funds.
It has a yield of 5 per cent.
Diageo
"Diageo has a very strong portfolio of brands, including Johnnie Walker, Smirnoff and Guinness," Griffin continued.
"Growth is driven by its emerging markets exposure, which represents over 40 per cent of sales, as well as trading up to premium spirits in the US as consumer confidence recovers."
"While the shares have performed well recently, they are in line with peers, despite having greater spirits exposure, which tends to be more resilient than beer in an economic slowdown."
"Barriers to entry are also high given Diageo's strong brands and the requirement to age spirits such as whisky."
Diageo, which is currently yielding 2.25 per cent, is held by 138 funds in the IMA universe. Griffin’s Fidelity Moneybuilder Growth fund has a 5.8 per cent stake in the stock, making it its fourth-biggest holding.
It is Nick Train’s largest holding in his CF Lindsell Train UK Equity fund, accounting for 9.4 per cent of assets under management (AUM).
WPP
WPP is the world's leading advertising company, which Griffin says benefits from having significant exposure to both digital media and emerging markets – the two key growth areas for the industry.
"Digital was originally seen as a threat for advertisers, but is now seen as a huge opportunity as companies need help in developing their online strategies," he said.
"Within emerging markets, WPP has an unassailable lead in China, given significant investment and first-mover advantage."
"The company is more conservatively managed than in the past, with a flexible cost base and strong balance sheet. It pays a good dividend which is well covered and expected to grow."
GLG Technology Equity, Fidelity Moneybuilder Growth and JOHCM Global Select are among 18 funds that hold the media company in their top-10.
It is currently yielding 2.6 per cent.
Griffin concluded: "Real industry winners are undervalued by the stock market. For an investor, highlighting industry winners and patiently holding the shares of these companies is as sensible a strategy as ever."
"Persistently higher-than-average returns on equity and revenue growth allow companies to re-invest the resulting cash-flow into generating yet more superior returns and revenues, which is even more relevant in today's post-financial crisis world."
"Over time, this allows industry winners to put clear blue water between themselves and their peer group."