Investment News 2012 Fund ISA Selection 18471785
2012 Fund ISA selection
20 March 2012 / by Oliver Roylance-Smith
With the ISA deadline on the doorstep, making sure you do not miss this valuable tax break should be a top priority. To help, we have put together our selection from the 1,500+ funds available from the Fair Investment Fund Supermarket.
Independent ratings from OBSR
OBSR is an independent consultancy specialising in investment analysis. Their fund ratings are based on a proven research process where qualitative research is supported by quantitative analysis and they currently rate about 250 out of the entire investment universe. All of the funds detailed below are either AA rated (‘Very Good’) or AAA rated (‘Exceptional’).
Obtaining a high yield from your investment is a popular requirement and the main criteria here include a strong history of competitive yields along with regular payment dates.
The Monthly Income Plus fund from Invesco Perpetual has a current distribution yield of 7.01%* and income is paid monthly. The fund is AAA rated by OBSR and is top quartile over the last 3 and 5 years on cumulative performance.
Aberdeen’s High Yield Bond fund also pays income monthly and has a highly attractive distribution yield of 9.00%*. The fund is relatively new, having launched in March 2011, but holds a AA rating from OBSR.
Our last income selection is Invesco Perpetual’s Distribution fund. This is a managed fund which aims to give a balance of income and growth through a portfolio of primarily UK equity and bonds with a maximum of 60% permitted in shares. The current distribution yield is 6.70%* and income is paid monthly.
Select Range – 0% initial charge
All of the above income funds are featured from our Select Range and as such are available via the Fair Investment Fund Supermarket at 0% initial charge. You can also take advantage of your ISA allowance for both the current and next tax year as well as transfer any existing holdings.
With over 1,500 funds from over 90 investment managers, the Fair Investment Fund Supermarket offers a vast choice when considering which sector to invest in. We give you our selections from some of the most popular investment themes:
Our UK Equity selection is M&G’s Recovery fund which is AAA rated by Morningstar, S&P and OBSR and has had top quartile cumulative performance over the last 1, 3 and 5 years**, returning 81.29% over the last 3 years**.
Neptune’s Global Equity fund is not only AAA rated by OBSR, but has also outperformed its benchmark by over 100% since launch. The fund aims to generate capital growth across world equity markets and has returned almost 60% over the last 3 years*.
Aberdeen’s Emerging Markets fund is also AAA rated by OBSR and it has had top quartile performance over 1, 3 and 5 years. Returning 118.25% over the last 3 years*, the fund has exposure to emerging stock markets worldwide with the current top 3 countries by weighting being Brazil, India and Hong Kong.
Our corporate bond selection is Invesco Perpetual’s Corporate Bond fund which aims to achieve a high level of overall return with relative security of capital by investing mainly in bonds in both the UK and overseas. The fund is AAA rated by OBSR and has returned almost 50% over the last 3 years with a current distribution yield of 5.37%*.
Kames (formerly AEGON) has a solid history of funds with an ethical focus and their Ethical Equity fund has an AA rating from OBSR. The fund aims to maximise total returns by investing in companies principally conducting business in the UK and which meet the funds predefined ethical criteria covering areas such as screening for gambling, alcohol, tobacco and animal welfare. The fund has returned 66.86% over the last 3 years**.
The Blackrock Gold and General fund aims to achieve long term capital growth by investing in gold mining and precious metal-related shares. The fund has a AAA rating from OBSR and is top quartile over 5 years having returned 87.02%**. Due to the nature of the underlying investment this fund can be volatile but is well suited for diversification within a larger portfolio.
Please note that past performance is not a guide to future performance.
Select Range – 0% initial charge
All of the growth funds detailed above are taken from our Select Range and as such are available via the Fair Investment Fund Supermarket at 0% initial charge. You can also take advantage of your ISA allowance for both the current and next tax year as well as transfer any existing holdings.
Important reminder – why do an ISA?
The main reason for making sure you use your annual ISA allowance each year is the tax advantages, since no tax is payable on the income you receive on any capital gains that you make, and there is no need to declare any ISA income or capital gains on your tax return. Investment ISAs therefore provide tax efficient income and growth, the value and benefit of which is compounded over time. Please note that tax treatment depends on your individual circumstances and may change.
* data correct as at 31/01/2012
** data correct as at 29/02/2012
No news, feature article or comment should be seen as a personal recommendation to invest. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment. If you are at all unsure of the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. Different types of investment carry different levels of risk and may not be suitable for all investors. Tax treatment depends on your individual circumstances and may change.
© Fair Investment Company Limited