Investment News Last Minute 2013 Fund ISAs Our Top 10 18471936
Last Minute 2013 Fund ISAs – our Top 10
26 March 2013 / by Oliver Roylance-Smith
With less than a week to go until the deadline for using your 2012/13 Investment ISA allowance (£11,280), this is your last opportunity to protect your returns from the taxman. To give you an idea of where others are putting their money, we feature our Top 10 most popular funds.
Huge discounts available
There are massive savings available not just on the standard initial charges, but also the annual management charge. Many funds have a 0% initial charge and a saving of 0.2% on the standard annual management charge. Based on the maximum invested into a current year ISA this equates to a saving on initial charges of up to £534. See below for the savings on each individual fund.
A sign of quality – independent ratings agency OBSR
Morningstar OBSR is an independent consultancy specialising in investment analysis. Their fund ratings are based on a proven research process that takes into account the multiple factors vital to a fund’s success. The research combines qualitative analysis (i.e. the quality of the management team and the fund selection process) with quantitative analysis (i.e. the fund’s past performance).
The top three ratings – Gold, Silver and Bronze – indicate that the fund is highly regarded by OBSR analysts. The very highest ratings are given to funds which, in the analysts’ opinion, have the strongest ability to outperform its benchmark and peers through time, within the context of the risks taken – the stronger the conviction that this will happen, the higher the rating. All of the funds detailed below are rated at least ‘Silver’.
1. First State Global Emerging Market Leaders
First State Global Emerging Market Leaders Fund is Gold-rated by OBSR. The fund aims to achieve long-term capital growth by investing worldwide in emerging economies, as well as in those companies which are listed on developed market exchanges but whose activities predominantly take place in emerging market countries. With holdings in economies such as Brazil, Taiwan and South Korea, this fund offers portfolio diversification balanced against the potentially higher risks of emerging market investments.
2. Invesco Perpetual High Income
The Invesco Perpetual Income Fund has a current gross yield of 4.1% and, again, holds a Gold rating from OBSR. The Fund aims to achieve a reasonable level of income, together with capital growth. The fund intends to invest primarily in companies listed in the UK, with the balance invested internationally. Income is paid twice yearly, in March and September
3. M&G Global Basics Fund
If you’re looking to invest in a fund with the sole aim of long-term capital growth, you may want to look at the M&G Global Basics Fund. This global equity fund concentrates on companies operating in basic industries, with 27.9% of funds invested in this area. Gold-rated by OBSR, the fund has also outperformed its benchmark consistently since January 2010.
4. Newton Asian Income
For those looking to take advantage of the opportunities offered by emerging markets, the Newton Asian Income Fund offers the opportunity to chase long-term capital growth while achieving income – currently, the fund yields 5.3% (gross). The investment portfolio is largely based in securities in the Asia-Pacific region, with the reassurance of a Silver rating from OBSR.
5. Invesco Perpetual Monthly Income Plus
Our income bond selection includes the Gold-rated Invesco Perpetual Monthly Income Fund, which 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. Income is paid on a monthly basis, and the income yield currently stands at 6.1% (gross)
6. M&G Optimal Income
The M&G Optimal Income Fund offers twice-yearly payments via investments across a broad range of income assets, with at least 50% investment in debt instruments. The fund has a Silver OBSR rating and, with a current gross yield of 3.6%, aims to provide a total return to investors based on exposure to optimal income streams in investment markets.
7. Blackrock Gold & General
The Blackrock Gold and General Fund aims to achieve long term capital growth by investing in gold mining and precious metal-related shares. This is a Gold-rated, specialist unit trust which aims to achieve long term capital growth by investing in gold mining and precious metal-related shares. It tends to be volatile – the percentile rank alone has ranged from 7 to 99 since 2008 – and is therefore most suitable as a diversification fund within the remit of a larger portfolio, rather than as a stand-alone investment.
8. Artemis Income
The Artemis Income Fund aims to provide an increasing income and capital growth from investing mainly in ordinary shares, preference shares, convertible bonds and fixed-interest securities in the UK. The fund has a Gold rating from OBSR and offers twice-yearly income payments, with a current gross yield of 5%.
9. Jupiter Merlin Income Portfolio
If you’re looking for more frequent income while maintaining a UK focus, the Jupiter Merlin Income Portfolio offers quarterly income payment from a diverse range of holdings that include 31.5% UK equities. With a current gross yield of 3.5%, the fund also benefits from an OBSR Gold rating.
10. Newton Global
The Silver-rated Newton Global Higher Income Fund aims to provide increasing income and capital growth over the long term by investing in equities, and similar investments, on a global scale. Income is paid on a quarterly basis and the current yield stands at 4.7% (gross).
Please note that past performance is not a guide to future performance.
How to apply
Applying is easy and with the ISA deadline imminent, you will need to use our online investor service. Simply click on any of the links above and follow the online steps. Note that for new ISA investments you will need a debit card and your National Insurance number at hand. How to invest »
Remember that you can also take advantage of your ISA allowance for both the current and next tax year as well as transfer any existing holdings. If you have any questions or need help with applying, contact our Investment Helpline on 0845 308 2525.
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. Tax treatment depends on your individual circumstances and may be subject to change in the future.
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.
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