Where are Fidelity’s experts investing their ISAs?

With roughly a week to go before the end of the tax year, ISA savers will be looking for inspiration when it comes to where to invest their ISA allowance. To help investors with their choices, Fidelity International’s experts reveal where they are investing their ISA allowance this year.

Where are Fidelity’s experts investing their ISAs?

Tom Stevenson    Bill McQuaker  Maike Currie

Tom Stevenson, investment director for personal investing at Fidelity International (above left) said: “Eight years into the current bull market, investors are increasingly nervous about a correction, especially in the more highly-rated markets like the US. This is quite normal – bull markets climb a wall of worry – and I would be more worried if investors were overly optimistic. Excessive exuberance is a surer sign that we are close to the top.

“A maturing bull market is a good time to remain fully invested. Although volatility sometimes increases, investment returns can rise too as more cautious investors are persuaded to join in. They watch other investors making profits and worry about missing out.

“But it is also a good time to stick to quality. That is why I am repeating my recommendation of the Rathbone Global Opportunities Fund, a well-managed global equity fund with an excellent track record. This is a buy and hold fund for the long-term investor.

“My second ISA fund pick is a slightly more aggressive choice. Fidelity Special Situations is a classic contrarian fund that looks for the kinds of shares where growth potential is not fully recognised by the market. Alex Wright is a worthy successor to the fund’s first manager Anthony Bolton. Big holdings in banks, oil majors and construction companies will do well as the economic recovery takes hold and interest rates start to move higher.”

Bill McQuaker, portfolio manager, Fidelity Multi Asset Open Range, (above centre) said: “Economic data in Europe has been strong recently, but many investors have remained wary of Europe on the basis of political risks. Yet the probability of Marine Le Pen being elected is relatively small, and a positive French election result would likely be a catalyst for European equity outperformance.

“For ISA investors looking for exposure to the European story, I like the Threadneedle European Select Fund. This is a robust, reliable choice which people can be confident in investing for over the long term. The fund focuses on reliable businesses where the market underestimates a company’s ability to sustain higher returns over the long run. This helps to deliver that steady compounding effect which is so important to long term equity investors.”

Maike Currie, investment director for personal investing at Fidelity International, (above right) said: “With inflation rising sharply over the past few months and market sentiment starting to look uncertain, I’ve been topping up my holding in gold within my ISA as a hedge against both.  My fund of choice is the Investec Global Gold Fund, which invests in the shares of gold mining companies.

“However, as I’m ultimately investing for the long term and looking for capital growth, a significant chunk of my ISA portfolio continues to be invested in equities. I’ve continued to spread my investments across a number of different geographical regions to help protect my money from any potential volatility we might experience. As a result, I have opted for the Fidelity Global Special Situations Fund, managed by Jeremy Podger. Podger is a veteran when it comes to global investing and has recently completed five successful years managing the fund. Over his tenure, the fund has delivered cumulative returns of 122.5% outperforming the MSCI All Country World Index by 31.5%.*

“As for my daughter Elise’s portfolio, I have adopted a ‘lock up and go’ approach with her junior stocks and shares ISA investing. I’ve invested in the Fidelity Index World Fund as I wanted a ‘set and forget’ fund that is low-cost and low maintenance and a global tracker seems to be the ideal choice for this.”

 

Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest. 

 

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