IFAs reveal “Top Picks” for ISA season

IFAs are tipping Asian equities (ex Japan) as the asset class they think will perform best in 2008, according to new research from James Hay. As the latest ISA season draws to a close, James Hay’s adviser poll reveals that the experts are favouring emerging market equities, but UK equities are also expected to perform well in 2008.

Over the longer term, however, the James Hay study reveals that UK equities are expected to move up the rankings into second place, as advisers predict the asset class will perform better than Asian equities over a five year time period. Emerging market equities top the five-year forecasts, expected to perform the best over the medium to long term.

At the opposite end of the scale, UK residential property is expected to perform worst in 2008, closely followed by UK commercial property. US equities are also not expected to perform well in 2008. Over a five year term, UK government bonds are expected to perform worst, followed by UK corporate bonds and cash investments.

Chris Smeaton, Propositions and E-Commerce manager at James Hay, said: “It is clear from this research that IFAs believe that there will be a significant divergence between the performance of geographical regions and asset classes over time. This highlights the importance of investors seeking advice from a suitably qualified professional adviser who can advise from across the whole market.

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Investors using James Hay Wrap can now choose retail and institutional funds, OEICS (Open Ended Investment Companies) and Unit Trusts at competitive and preferential terms. Together, the James Hay SIPP and Wrap businesses have over £13 billion under administration.

James Hay Wrap offers free fund switches and automatically returns rebates to client accounts. Unlike many competitors, James Hay has a philosophy that supports “any fund, in any tax wrapper at any time” and has no preferred fund houses or Investment styles. Advisers and direct investors can buy any fund they choose.