Ten funds defying the odds this ISA season

It’s been a difficult start to the year for markets. January saw both growth strategies and bond markets fall with the prospect of rising interest rates and now the invasion of Ukraine has left investors – indeed the world – reeling.

Global stock markets have sold off and the FTSE 100, having held up reasonably well initially, fell almost 7% last week, falling below the 7,000 mark, as the war intensified.

But some investment funds have held up better than others.

Here, we take a look at ten Elite Rated funds and trusts that have managed to stay in positive territory so far this ISA season.

BlackRock World Mining Trust: up 25.1% year to date*

BlackRock World Mining is a specialist trust offering exposure to mining and metals companies globally. In addition to investing in quoted securities, the trust may also invest in royalties derived from the production of metals and minerals, physical metals and unquoted securities. It also offers an attractive dividend yield to investors. Managers Evy Hambro and Olivia Markham spoke to use recently on this podcast:

ASI Latin American Equity: up 15.2% year to date*

ASI Latin American Equity fund gives investors exposure to companies throughout Latin America. It is managed by abrdn’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.

Ninety One Global Gold: up 10.6% year to date*

This is a concentrated fund investing in gold mining companies. It has an excellent track record and has been managed by George Cheveley, a highly experienced commodities expert, since 2015. It has a strong process emphasising the importance of high returns on capital and there is an emphasis on sustainability which is built into all company models. Performance is likely to be heavily dependent on the price of gold.

Jupiter Gold & Silver: up 5.7% year to date*

A truly unique fund, Jupiter Gold & Silver invests in both physical gold and silver bullion, as well as gold and silver mining companies. Most funds in its peer group are unable to own physical bullion, making this a very different proposition. Jupiter Gold & Silver’s returns have been volatile since launch, but its low correlation to other asset classes demonstrates its potential value in a diversified portfolio.

LF Ruffer Diversified Return: up 3.6% year to date*

An extension of the wider Ruffer Investment Strategy, the LF Ruffer Diversified Return fund is an absolute return vehicle which has the protection of investor capital at the heart of its process. The fund aims not to lose money on any 12-month rolling basis, with a strong emphasis on providing genuine protection in times of market stress. Asset allocation is the key driver of returns in the portfolio.

Jupiter Asian Income: up 2% year to date*

Well-known Asian income manager Jason Pidcock combs the breadth of the Asia Pacific market in search of large companies with reliable dividends that can deliver both income and growth for investors. Jupiter Asian Income fund aims to capitalise on the opportunities of today, as well as the potential of tomorrow, and is not afraid to hold much more or less of certain countries than its benchmark in pursuit of this aim.

TIME: Commercial Long Income: up 1.2% year to date*

Time:Commercial Long Income aims to provide a secure and stable investment return primarily through acquiring commercial freehold ground rents and commercial freehold property (known as ‘long income property’), which benefit from long leases. The fund targets an income return of 4% per annum and capital growth. Owing to its very low correlation to fixed income and equities, this fund could be an excellent diversifier.

Lazard Global Equity Franchise: up 0.5% year to date*

Run by a four-strong team this offering looks for companies that have an edge in their respective business sectors. It can invest in any business around the world, but because the managers are looking for industry leaders, there is a natural bias towards larger-sized companies. The fund is also differentiated by the managers’ systematic approach to portfolio construction, which means that behavioural biases should be removed.

Polar capital Global Insurance: up 0.4% year to date*

There are few managers with a more intimate knowledge of their market than Nick Martin. His many years of experience working in the risk and casualty insurance markets are fundamental to the success of this fund, which provides access to this specialist and often undervalued sector. Everything around us is insured, regardless of economic boom or bust, which provides this fund with very good defensive characteristics

Schroder Asian Income: up 0.2% year to date*

Schroder Asian Income fund uses the experience and depths of Schroder’s regional presence and research team to find companies that offer attractive yields and growing dividend payments. The fund will invest in the Asia Pacific region, including Australia and New Zealand, but excluding Japan. Manager Richard Sennitt has a flexible mandate and aims to maintain a well-diversified portfolio of income streams to generate a 3.5% to 4% yield.

*Source: FE fundinfo, total returns in sterling, 1 January to 4 March 2022

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.