Five ISA tips for the very last minute investor

17th March 2014


Adrian Lowcock, senior investment manager at Hargreaves Lansdown offers his last minute ISA ideas as this year’s deadline approaches…

The Budget reminds us all of the importance of making the most of your tax breaks and using your ISA allowance is one of the best ways to do this. Make sure you use your ISA allowance by Midnight on the 5th April, as once the tax-year ends you have lost that allowance forever.

Income investor

Newton Global Higher Income – Manager James Harries’ over-riding objective for the fund is to provide growth in income and capital over time. This fund provides a way to for income seekers to diversify away from the UK and access countries such as Australia, Canada and the US where the dividend culture is well established. Given the current defensive positioning, the fund should be better at protecting investors in a falling market.

Defensive investor

Troy Trojan – Manager Sebastian Lyon’s focus is on capital preservation. As such this fund is defensively invested. He aims to achieve a reasonable level of return over the medium term with a little less volatility than other longer term more aggressive portfolios. Given its defensive nature the fund performance is likely to lag in strongly rising equity markets.

Medium risk investor

Old Mutual UK Alpha – The manager, Richard Buxton, adopts a buy and hold approach taking a longer term view to investing.  He mainly invests in FTSE 100 companies and as such this fund may be considered less risky than some alternative UK equity funds. However, because the fund is fully invested in shares, investors might see some volatility, particularly when the manager’s style is out of favour with the market.

Long-term investor

Newton Emerging Income – This suggestion is for investors with a long time horizon.  Therefore the focus is on more risky areas with greater potential to build wealth over the long term.  However, Sophia Whitbread and Jason Pidcock, the managers, do look to reduce risk by focusing on companies able to pay and grow their dividends over time.

Undecided investor

Your ISA allowance is one of the most important tax breaks and if you don’t use it by Midnight on the 5 April, you lose it. Investors who are unsure where to invest should still open up a stocks and shares ISAs and place the money temporarily in cash, pending investment.

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