Invesco Perpetual and Schroder among best ISA funds Go compare with our comparison table

Invesco Perpetual and Schroder among best ISA funds

10 March 2010 / by Rebecca Sargent

Invesco Perpetual and Schroder funds are among the six best ISA funds to invest in, Torquil Clark has claimed.

Nigel Walker, head of research at the Independent Financial Adviser firm named Artemis Income, Invesco Perpetual High Income and Schroder UK Alpha Plus among his 'six of the best' funds worth considering for your ISA.

Of the Artemis Income fund, he said: "This is one of very few funds which has two co-managers. This indicates the importance Artemis attaches to the substantial fund of practically £3billion.

"The fund has the attraction of the flexibility of being able to invest up to 20 per cent in overseas markets, many of its peers do not and Artemis is starting to put this wider scope available to them to good use."

Meanwhile, the Invesco Perpetual High Income fund, managed by Neil Woodford, has an outstanding track record. Mr Walker said: "The resolutely defensive approach he favours means that there will be spells when he will underperform against his peers, however it does mean that currently the fund is well placed to perform in an uncertain economic environment."

Of the Schroder UK Alpha Plus Fund, he adds: "This takes a much more concentrated approach than many of its peers, its rigorous research approach means that generally around 35 shares are held, all of a broadly similar size."

Other investment funds to make it into his top six include the Newton Global Higher Income, M&G Strategic Corporate Bond, and Jupiter Absolute Return fund.

Nigel Walker adds: "When taken as a whole these funds should work well together because Artemis and Invesco Perpetual generally invest in companies with a defensive bias, so potentially could be resilient funds to hold during a time when the economic recovery remains fragile.

"Newton provides overseas exposure, but does so in a framework which still provides a high income. The Schroder fund with its very focussed growth bias compliments the three income funds.

"For diversification the M&G fund invests in corporate bonds, whereas the Jupiter fund with its very flexible approach aims to deliver positive returns irrespective of market conditions."

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 Product NameISA OptionIncome YieldMore Info
Monthly Income Plus Fundyes
7.50%*
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
Higher Income Fundyes
7.05%**
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Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. 100% discount on initial charges.
Distribution Fundyes
6.98%*
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Income Paid Monthly. Offers balance between both income and capital growth through investment in UK based equities and fixed interest securities. Save 100% on Initial Charges.
Income Maximiseryes
7.00%***
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Seeks to achieve a target yield of 7% to generate a quarterly income, whilst offering the potential for some long-term capital growth. Save 100% on Initial Charges.
Strategic Bondyes
6.20%*
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Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. Save 100% on Initial Charges.
Corporate Bond Fundyes
5.63%*
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Invests mainly in fixed interest securities to achieve a high level of income will relative capital security. Save 100% on Initial Charges.
Global Equity Income Fund yes
4.56%**
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Equity and equity related investments across global markets aiming to provide income and growth. Save 100% on initial charges.
Optimal Income Fundyes
4.55%*
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Invests across a number of bonds to generate an optimised income that is paid biannually. Save 100% on Initial Charges.
Strategic Bond Fundyes
4.48%*
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Aims to deliver a maximum total return for investors through investment in global debt instruments. Save 100% on Initial Charges.
Income Fundyes
4.60%**
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Market leading equity income fund that delivers and income which is paid biannually. Save 100% on Initial Charges.
UK Income Fundyes
4.01%**
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Aims to provide an above average and growing income that is paid quarterly. Save 100% on Initial Charges.
Income Fundyes
3.91%**
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Aims to achieve a competitive level of income together with some capital growth by investing in UK based shares. Save 100% on Initial Charges.
High Income Fundyes
3.90%**
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Popular with investors, this fund aims to deliver a high level of income combined with capital growth by investing primarily in UK based companies. Save 100% on Initial Charges.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

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