Although it’s not quite New Year, our financial thoughts will soon be heading towards 2022. There will be self-assessment tax returns to be completed and tax bills to pay.
Many readers will also take the opportunity to review their investments – for example, those held in a tax-friendly Isa or pension – to see whether they remain on track.
With this in mind, The Mail on Sunday asked a mix of investment experts – as well as an avid reader and yours truly – where they would be investing any spare cash in the months ahead as the end of the tax year looms and Isa allowances and pension contribution limits need to be used or lost. ‘India did well, US is pricey… so I’m sticking to home turf’
Jason Hollands, Tilney Investment Management
My rule is to hold no more than 20 funds in my investment portfolio. If I’m thinking about adding a new fund, it forces me to review my existing holdings and decide if one of them needs to be replaced in favour of the new idea. Jason Hollands Otherwise, my approach is to top up existing holdings to keep my asset allocation – the split between different markets – in line with where I think it should be for the long run. The composition of my investment portfolio naturally drifts over time as stock markets don’t all move in tandem.
With my pension fund up against the lifetime allowance limit, my investment focus is now on my Isa. I’m willing to take quite a lot of risk as my investment time horizon is long term, so my portfolio is firmly focused on equity-based investment funds.
My holdings in India did incredibly well this year and have become a bigger part of my overall portfolio, so next year I’ll be focused on topping up my funds in developed markets.
US equity valuations are too expensive. Indeed, I think the US market’s exposure to technology companies, which have powered great investment returns in recent years, might now come under pressure as a result of higher inflation and increasing interest rates.
I will therefore be topping up my UK equity holdings as the UK stock market remains undervalued compared to other developed markets.
It has an abundance of exposure to financials and commodities – sectors that typically benefit from rising rates and higher inflation. I also think the frenzy of overseas bids we’ve seen this year for UK companies will continue, which will create investment opportunities.
I therefore plan to top up my existing holding in investment fund Fidelity Special Situations and add to a more recently established position in Artemis UK Select.
Both focus on companies that the managers believe are undervalued. It’s a style of investing that spent a few years in the wilderness, but has started to work well again over the past year. Three-way split: Europe, Asia and renewables
Ben Yearsley, Shore Financial Planning Ben Yearsley Unusually for me, I haven’t invested any new money in my Isa this tax year. But I have been buying and selling shares within my account, taking advantage of price volatility in some of the holdings.
Aged 45, I’m still a long-term equity investor – and three investment themes are beckoning me to invest; Europe, Asia and renewable energy. Europe has been unloved as an investment area for a long time. Yet company profits are rising, although Omicron might put a spanner in the works.
Three funds I especially like are investment trust European Opportunities (run by star manager Alexander Darwall at Devon Equity Management); Martin Currie European Unconstrained and stock market-listed Montanaro European Smaller Companies.
I’m always positive on Asia as an investment opportunity and I like fund Matthews Asia Innovative Growth. The fund invests in those companies benefiting from the region’s emerging middle classes with money to spend.
Asia’s consumer market is expected to become bigger than those of the United States and Europe combined by 2030.
That’s some statistic, which is why funds such as Matthews Asia Innovative Growth should thrive. Although many renewable assets look expensive, I’m happy to be a decade-long investor. This investment story isn’t going away in a hurry and I will get exposure to it via Schroder Global Energy Transition.
Finally, I will not invest all my Isa money in one go, but drip my money in between now and the end of the tax year on April 5. Trust in Nick Train and the good old British pub Edward Browne, retired reader from ManchesterI will continue to invest in investment trust Finsbury Growth […]
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