- Corporate earnings have been revised lower for 2023 with global growth slowing
- The reopening of China as the government relaxes its zero-Covid policy, has the potential to push the oil price higher – as well as other commodities and materials.
- With signs that inflation’s peaking, there could be greater scope for rate cuts in emerging markets
Investment Ideas For Your ISA
Troy Trojan
“Sebastian Lyon has managed this fund since its launch in 2001, using the same investment philosophy that was founded when Lyon helped to set up Troy Asset Management. We like his dedication to this same philosophy.
Q4 2022 hedge fund letters, conferences and more
This fund aims to grow investors' money steadily over the long run, by investing in a variety of asset classes including equities, bonds, cash and gold. Lyon likes large, established companies he thinks can grow sustainably over the long run, and endure tough economic conditions.
He has tended to focus on companies based in developed markets, such as the UK and US. This includes some of the world's best-known companies with highly recognisable brands. Less risk investments such as UK government bonds and physical gold provide balance.
Gold often acts as a safe haven during times of uncertainty, or could perform well if inflation takes off or key global currencies weaken. Cash provides shelter when stock markets stumble.
This fund could form the foundation of a broad investment portfolio, bring some stability to a more adventurous portfolio, or provide some long-term growth potential to a more conservative portfolio.”
Rathbone Global Opportunities
“James Thomson is one of only a few global fund managers to show they can pick great companies and perform better than the broad global stock market over the long term. His success can be put down to a straightforward, disciplined approach, and a willingness to view the world a little differently.
He looks for easy-to-understand businesses that can grow to dominate their industry and defend themselves from competition. He'll also search off the beaten track to find companies with superb potential that might be overlooked by other investors.
Thomson mainly focuses on innovative companies with high-growth potential that tend to do better when markets are rising. But he also invests in some companies that could grow their earnings at a steadier rate, which could hold up better when markets wobble, and avoids those that are overly complicated.
He likes companies where a positive catalyst, such as a change in management, will eventually get noticed by other investors and boost their share prices.”
Schroder Asian Alpha Plus
“Lead manager Richard Sennitt looks for businesses with high corporate governance standards and strong business models, steered by quality management teams. Working with co-manager Abbas Barkhordar and the Asian equities team at Schroders, Sennitt assesses how the earnings of each company analysed could change in the future.
A key part of this is evaluating if a company's shares can be bought at a price that doesn't yet reflect its longer-term earnings potential.
While mainly focusing on individual company analysis, Sennitt also considers economic factors to provide broader context to this research. This may involve looking at inflationary and employment trends and monetary policy – factors that are particularly concerning markets at the moment.”
Artemis Income
“Managers Adrian Frost, Nick Shenton and Andy Marsh focus on companies they believe can pay a sustainable level of income, regardless of the economic backdrop – which we believe is a sensible approach in the current climate.
The managers seek companies with reoccurring revenues which they believe will still have consumers, profits, and therefore dividends, in the future, regardless of disruption – although nothing is guaranteed. The managers spend a lot of time assessing company management and think their ability to allocate capital efficiently is vital to making a success of the business.”
Legal & General Future World ESG Developed Index
“Responsible investment funds give you the opportunity to make money while doing good. This fund invests in broad developed stock markets while being mindful of environmental, social and governance (ESG) issues. It won’t invest in tobacco companies, pure coal producers, makers of controversial weapons or persistent violators of the UN Global Compact Principles.
The fund aims to provide long-term growth and is invested across broad developed stock markets, such as the US, Japan and Europe. It invests in around 1,500 global companies and because of its ESG tilt has a bias towards sectors such as technology, pharmaceuticals and financials.
An index tracker fund is one of the simplest ways to invest, and this one could be a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way.”
Article by Joseph Hill, Senior Investment Analyst, Hargreaves Lansdown
