Six specialist options for this year’s ISA

When it comes to our investments, most of us start off with a ‘core’ – the assets or funds at the centre of our portfolio that will form the mainstay of our savings.

For some, this core is a multi-asset fund – a fund that, as the name suggests, invests in lots of different assets and has a manager that does all the work for you. Others like to build their own core – often including things like UK and global equities and bonds.

As our portfolio grows in value, or as our confidence as an investor increases, we then start to add some satellite or specialist investments to the mix.

There is no hard and fast rule as to what this satellite part of a portfolio may hold, and very much will depend on the individual investor, their requirements and often their interests. They could be looking to add another source of income, or they could be investing in something that has simply caught their eye.

For those looking to add something a little extra to their ISA investment this year, here are six specialist funds to consider:

M&G Emerging Markets Bond

This fund has the flexibility to invest across the whole emerging market bond spectrum. It can invest in both government and corporate bonds, denominated in local currencies or in the US dollar (‘hard’ currency). The manager uses her vast skill set in this asset class to analyse the macroeconomic environment, and individual companies, to pick what she believes to be the best mix of bonds for this portfolio.

TR Property Investment Trust

This trust invests in the shares of property companies of all sizes, typically within Europe and the UK. It will also have a small amount invested in physical property in the UK. Its managers look for well-run businesses in sectors including residential, industrial property, retail, office, and alternatives (which includes student accommodation, self-storage and healthcare).

Jupiter Financial Opportunities

This is a concentrated portfolio of ideas from the global financial services sector and associated firms. It will include businesses such as stock exchanges and online payment companies, as well as insurers and banks. The manager prefers businesses with sustainable growth characteristics and identifies these with a thematic approach, which looks at the wider trends driving the economy, and the impact these have on the financial services sector.

Polar Capital Global Healthcare Trust

This trust invests in a healthcare stocks from around the globe. These companies will predominantly come from four sub-sectors: pharmaceuticals, biotechnology, medical technology and healthcare services. The portfolio is split into two segments: growth and innovation with a circa 90/10 split. The growth element is made up of predominantly larger companies, whereas the innovation pot will invest into medium and smaller companies.

Ninety One Global Gold

This is a concentrated fund investing in gold mining companies. The manager’s philosophy is that investing in gold equities is better than investing in gold itself. He believes that gold equities offer leverage to the gold price – so if you believe in gold, you are better off owning gold equities. In addition, unlike physical gold, many gold miners pay a dividend and these pay-outs have been rising in recent years.

ASI Latin American Equity

This fund gives investors exposure to companies in Latin America. It is managed by Aberdeen Standard’s renowned emerging markets team, whose primary investment concern is whether companies demonstrate outstanding quality characteristics, such as strong management and balance sheets, this is followed by a value approach – targeting stocks which appear to trade for less than they should do. The strategy has had considerable success across the region.

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.