TQ Invest change their ‘Six of the Best’ Investment Portfolio
TQ Invest has announced a change to its popular ‘Six of the Best' portfolio of funds, switching the M&G Strategic Corporate Bond fund for M&G's Optimal Income fund.
Nigel Walker, Head of Research at TQ Invest said: "Every end to a tax year brings the same dilemma for clients looking to pick funds for their ISA. Over the years our Six of the Best has been a popular choice for clients, mainly because it saves time and provides a ready-made option to consider.
"The six funds are researched and selected by our experienced Investment Committee and offer a suggested balance of investments which could perform well. They don't replace the benefit of taking financial advice, but for investors happy to make their own decisions without the help and cost of an adviser, it can be a useful tool.
"Our committee felt the M&G Corporate Bond Fund was too cautious, offering limited opportunities for growth within the portfolio. Switching to M&G Optimal Income Fund provides wider scope as the fund manager has more tools to play with when investing in the fixed interest market. We believe the decision to switch funds will enhance the overall potential of the portfolio's performance."
"Overall we believe the Six of the Best portfolio works well together because Artemis and Invesco Perpetual generally invest in companies with a defensive bias, so could be resilient funds to hold during a time when the economic recovery remains fragile. Newton provides overseas exposure (including higher growth areas) with high income. The Schroder fund, with its focused growth bias, complements the three income funds. For diversification the M&G fund invests in fixed interest, whereas the Jupiter fund with its flexible approach, aims to deliver positive returns irrespective of market conditions."
2011's Six of the Best
15% Artemis Income Fund - (5.25% initial charge discount with TQ Invest)
The fund has the flexibility to invest up to 20% in overseas markets. Many of its peers do not. Generally, companies with more predictable earnings are preferred. Consequently there is a defensive bias to the fund, for example with stocks in the healthcare sector featuring heavily.
15% Invesco Perpetual High Income Fund - (5% initial charge discount with TQ Invest)
Managed by probably the best known of all UK fund managers, Neil Woodford, this fund has an outstanding track record. The resolutely defensive approach he favours means that there will be spells when he will under-perform against his peers (as happened last year) however, it does mean that currently the fund is well placed to perform in an uncertain economic environment.
20% Newton Global Higher Income Fund - (4% initial charge discount with TQ Invest)
Until fairly recently it was difficult to obtain any meaningful income by investing in European, South East Asian or American companies, however, in a low interest rate environment, companies are slowly becoming aware that attractive dividend payments will raise their profile and provide further reason to invest in them. About 20% is invested in South East Asia and Latin America, so also providing exposure to potentially higher growth economies.
20% M&G Optimal Income Fund - (4% initial charge discount with TQ Invest)
This is one of a range of funds managed by the highly experienced Richard Woolnough. It is a specialist fixed interest fund, which has the flexibility to allow separate views on duration (the sensitivity to interest rate change) and credit risk, which are the two key drivers of fixed interest securities. This approach allows the fund to profit from a broad range of scenarios that more traditional fixed interest funds would be unable to achieve. This flexibility is a key attraction of the fund.
15% Jupiter Absolute Return Fund* - (4.75% initial charge discount with TQ Invest )
Philip Gibbs has been one of the best fund managers for many years. This fund, provides the manager with greater scope to have significant flexibility, it can genuinely take a "go anywhere" approach. The portfolio will invest in a range of assets including shares and fixed interest securities allowing the manager to use strategies designed to make money in falling, as well as rising markets. Despite an unremarkable 2010, he remains a most able manager.
15% Schroder UK Alpha Plus Fund - (5.25% initial charge discount with TQ Invest)
Richard Buxton continues to believe that an approach of simply tracking the FTSE 100 Index will not deliver the returns compared to a pro-active approach. Consequently, being heavily overweight in banks in early 2009 was highly beneficial. This fund takes a much more concentrated approach than many of its peers, its rigorous research approach meaning that generally around 35 shares are held.
To invest in the Six of the Best portfolio, or any other fund, visit tqinvest.co.uk or call a member of the team on 0800 294 7191. Follow TQ Invest on twitter.com/tqinvest.
*A performance fee may apply if the fund meets certain performance criteria. For full details of the performance fee please refer to the fund fact sheet which can be found at tqinvest.co.uk.
Past performance should not be regarded as a guide to the future. Please note that our ‘Six of the Best' Portfolio is not personal advice to you.