25th June 2014
The Share Centre’s head of investment research Andy Parsons has identified three funds across a breadth of investment risk that may prove attractive for investors to top up on as the ISA limit increases to £15,000 as of 1 July 2014.
Artemis High Income fund
“This fund is suitable for investors seeking additional income through a combination of debt and equity backed investments. Managed by Adrian Frost and Adrian Gosden, the fund has a minimum of 80% invested in bonds, with the added benefit of up to 20% invested in equities, which helps capital growth.
“The fund is mainly invested in the UK, with the flexibility to invest worldwide. Industry exposure is capped at a maximum of 15% to ensure that the distribution is not overly dependent on one entity or sector. The favoured current sectors for this fund are Financial Services, Insurance, Utilities.
“The fund distributes four times per annum and has a historic yield of 5.2%, considerably above the current rate of inflation and interest rates available on the high street.”
Schroder Recovery fund
“As its name suggests, this fund invests in companies where the profits or share price have suffered a setback but the prospects for future recovery are encouraging.
“The fund is co-managed by Kevin Murphy and Nick Kirrage, and supported by an experienced UK equities team. The managers look to the long-term value of a stock, rather than short-term gain and the fund typically comprises of 60 to 80 stocks. The fund can include a maximum of 20% of assets in overseas stocks, but there are no particular stock or sector restrictions.
“The funds top holding are currently in the Financials, Consumer Services and Telecomm and Technology sectors.”
Legg Mason Japan Equity fund
“The Legg Mason Japan Equity fund, managed by Hideo Shiozumi, seeks to benefit from the economic and structural changes that Japan faces. These changes may be the result of the continuing and ongoing rapid emergence of the internet as a sales channel, the opportunities created by the ageing population, or the medical and long-term care industries needed to help support the nation.
“The number of holdings varies between 25 and 60 stocks, with around 80% of the holdings seen as core for the long term, while the remaining 20% are seen as tactical short to medium term investments. The lower the number of individual holdings, the greater the conviction and bullish feeling the manager has.
“The fund is flexible across the entire market cap spectrum, but generally focuses on smaller to medium sized companies. The fund currently has the most exposure to Healthcare, Information Technology and Industrials.”