You are here: Home - Investing - Getting Started - News -

ISA 2020: ‘Around the world in eight ISA ideas’

0
Written by: Darius McDermott
13/03/2020
With thousands of funds to choose from and with just three weeks left to allocate your ISA money, you may be questioning how to find the right one.

“How do I go about finding the right fund for me?”

It’s an often-asked question by investors as they scour the 3,000+ universe of funds available, to decide where to invest their ISA allowance ahead of the deadline on 5 April 2020.

It’s even more challenging when stock markets are tumbling as they have been in recent days.

However, uncertainty also brings opportunities, with the share price of many companies now at more attractive levels.

So, while our own travel plans are now more restricted, with many flights cancelled, we thought we’d look at a few investment ideas around the globe that investors can get onboard with, at a speed that would make Phileas Fogg proud.

United Kingdom

Driven by the FTSE 100, there’s no place like home when it comes to funds that deliver a strong income to investors. A good option here is the Royal London UK Equity Income fund, managed by Martin Cholwill, which invests in a high conviction portfolio of around 50 stocks and has an historic yield of 4.5%.

Europe

While the UK may now have officially left Europe, there are still plenty of investment opportunities within our reach. John Bennett, manager of Janus Henderson European Select Opportunities fund, targets companies that have been badly managed (but are not necessarily bad businesses) but are likely to prosper over the long-term.

United States

The US, as the largest market in the world, is simply too big to ignore. One fund to consider is LF Miton US Opportunities, a 35-45 stock portfolio, which typically consists of a greater proportion of medium-sized companies and smaller large companies, than its peers.

Japan

Those thinking of investing in Japan may want to consider the T. Rowe Price Japanese Equity fund, managed by Archibald Ciganer, which invests in 60-100 stocks. For the long-term investor, this fund offers diversified Japanese exposure, with a manager who has the skill and flexibility to react to evolving market trends over time.

Latin America

Those looking for a higher risk strategy may want to consider the likes of the ASI Latin American Equity fund. Research is key for this fund, with four to five company visits usually taking place before an investment is made and the focus is on quality companies to help manage volatility.

Emerging Markets

The long-term argument for emerging markets is clear. Towards the end of 2019 they accounted for 74% of global growth (GDP) as their stock markets continue to liberalise and grow. The Hermes Global Emerging Markets SMID Equity fund is an option here. Its managers focus on small and mid-cap emerging markets companies to build their 75-100 stock portfolio.

Going global for income…

Going global for diversification is a sensible choice, particularly in the income space where there are some 2,500 stocks to choose from. An option here is the BNY Mellon Global Income fund, a value-biased global strategy managed by Nick Clay. It’s designed to generate a yield at least 25% greater than that of the global stock market.

…and growth

A recent addition to our Elite Rated funds is the Investec Global Environmental fund, managed by Deirdre Cooper and Graeme Baker. It has a unique approach of only investing in companies that are contributing to the decarbonisation of the world economy. The portfolio has complete conviction, with just 20-40 holdings.

Darius McDermott is managing director of Chelsea Financial Services and FundCalibre

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week