BLOG: Four last-minute ISA suggestions
Will stock markets rally from here or will they take another downturn? Will inflation remain high or will prices start to stabilise? Will geo-political tensions continue to rise, or will we see peace in Europe soon?
No one knows the answers to these questions, but there is an answer to the investment dilemma: pick a multi-asset fund and let a professional investor move the asset allocation around for you as situations change.
Here are four funds that could be worth considering before the end of the tax year on 5 April:
Jupiter Merlin Balanced Portfolio
Jupiter Merlin Balanced is a multi-manager fund meaning that it invests in funds rather directly into equities or bonds. The team managing it seeks to take advantage of short-term market movements that create opportunities and take defensive measures where appropriate.
The largest asset allocation is currently the 37.4% in global equity funds, including Fundsmith Equity and M&G Global Dividend. Just under a third of the portfolio is in UK Equity funds such as Man GLG Income.
US equity funds make up 12.8% of the portfolio, while there is also 9.5% in fixed interest funds – namely Allianz Strategic Bond and Jupiter Strategic Bond. The remainder is split between Japanese equity funds, property and physical gold funds and cash.
Close Managed Income
Close Managed Income is another multi-manager fund aiming to provide capital growth and income by investing in both actively-managed funds and exchange traded funds. It sits on the conservative side of the risk spectrum, with preservation of capital a strong focus, alongside income generation.
From an asset allocation standpoint, around a third of the portfolio is invested in fixed income funds, around half the portfolio in equity funds and the remainder is in alternatives like music royalties. Among the top ten fund holdings there are names such as JP Morgan US Equity Income, Schroder Income and Matthews Asia ex Japan Dividend. The yield is just over 3%.
Liontrust Sustainable Future Managed fund
This fund has a sustainable process and invests in a combination of global equities, bonds and cash. It invests directly in the assets – not on other funds. The managers use a thematic approach to identify the key structural growth trends that will shape the global economy of the future. Three mega trends have been identified. These are: better resource efficiency (cleaner), improved health (healthier), and greater safety and resilience (safer).
It currently has just under 40% invested in UK companies and 37% in US firms. The largest holdings include Visa, American Tower Corporation (a real estate investment trust and an owner/operator of wireless and broadcast communications infrastructure), and Thermo Fisher Scientific, which gives clients access to laboratory equipment, chemicals, supplies and services used in scientific research, healthcare, safety, and education markets.
M&G Episode Income
M&G Episode Income is a multi-asset fund that invests directly in individual stocks and bonds, while property exposure is gained by investing in property funds. The name “Episode” refers to those periods of time when investors’ emotions cause them to act irrationally. The manager uses behavioural finance to find pockets of value and invest against the herd, rather than following it.
The fund currently has 43.7% invested in equities, with the majority in US companies (18.4%) and Japanese firms (9.2%). A further 31.6% is invested in government bonds (again with a preference for the US) and 11.7% in corporate bonds. Property accounts for just 3.1% of the portfolio at the moment.
Juliet Schooling Latter is research director at FundCalibre