5 Fund tips to make the most of your ISA allowance

With the new tax-year having just started, it’s time to think about what funds you can add to your ISA.

Article updated: 17 April 2020 3:00pm Author: Sheridan Admans

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As the Manager of the ES Share Centre Multi Manager range of funds, I’m constantly researching and analysing various funds so, when thinking about funds to recommend, there are a lot for me to choose from. The big task is whittling down the contents of three multi-manager funds into just five fund ideas.

After thinking over possible directions for markets, assets and sectors, I was looking for funds that could thrive over the next five years; it was more hypothesis than science. The five that I settled on are not likely to be everyone’s cup of tea, with the portfolio being more biased towards investors seeking growth opportunities over income. Moreover, this list is somewhat light on cautious elements.

This portfolio primarily attempts to benefit from what I expect to be the consistent long-term investment themes and growth drivers in the five years to come:

  • Growth in developing markets
  • Ageing populations
  • Demographics changes
  • Globalisation
  • Ailing infrastructure
  • Advancements in new or alternative/renewable energy
  • Technological innovation

Legg Mason RARE Global Listed Infrastructure

There’s no denying that economies need reliable infrastructure to help get goods and services to market, which means development and maintenance of efficient strategic assets like road, rail, sea ports, gas, electric and water utilities. In countries such as China and India, this is likely to result in new facilities, whereas in the US and Europe, the likely outcome is upgrading current facilities and improving their efficiency.

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Polar Capital Global Insurance

Insurances also play an essential social and economic role because of the diversity of risks they cover. This is the only European fund dedicated to investing in the global insurance industry, providing wide geographical exposure. All the while, the companies the managers invest in provide insurance products that are often required by law and that are constantly in demand, whatever the macroeconomic backdrop.

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Smith & Williamson Artificial Intelligence

I believe Artificial Intelligence (AI) will be a core investment theme for years to come. Systems are already becoming entrenched, operating silently in the background, relying on more than we may immediately recognise. From personal assistants like SIRI to self-driving cars, AI is often depicted in fiction as taking on a human, or at least a physical, form. But today it manifests itself as a whole host of invisible algorithms, such as:

  • Google’s search algorithms
  • News generation, often referred to as ‘news bots’
  • Medical diagnoses and minimally invasive prostatectomies
  • Cybersecurity and autonomous weapons systems.

This fund not only invests in those business that globally benefit from AI but employs the uses of AI in the investment process to enhance the efficiency to identify companies offering the best exposure to AI.

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iShares S&P 500 Healthcare Sector ETFs

Healthcare plays an important part in any economy and it is well-known that an economy with fit and healthy workers is a productive economy.
Healthcare is generally considered a defensive sector for investment. However, through technological change, aging populations in a number of global markets, and a greater consumption of healthcare products and services, the sector has been exhibiting more growth characteristics in recent years. In addition, certain modern day health problems, such as diabetes and obesity, are presenting investment opportunities. Consumers are also becoming more affluent and private healthcare is becoming more affordable and accessible, particularly in emerging economies.

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Merian Gold & Silver

This fund provides exposure to both gold and silver bullion as well as gold and silver listed securities. This strategy typically allows outperformance when precious metals are appreciating or in a bull cycle. Silver typically outperforms gold when both are rallying, thus providing a further boost to returns when compared to gold-only funds. Gold has also maintained its purchasing power over the long-term despite short-term volatility. One reason gold should have a place in a diversified portfolio is that it tends to respond positively to events that cause the value of fixed income and equities to fall. This fund is an ideal diversifier to incorporate into your overall portfolio.

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All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Sheridan Admans portrait photo
Sheridan Admans

Investment Manager

Sheridan co-manages our ES Share Centre Multi Manager funds and heads our team of research analysts. He is a chartered wealth manager and qualified financial adviser, and his qualifications include the Securities & Investment Institute (SII) Diploma and an MBA in investment analysis.

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