AIC reveals IFAs backing income for Isa season

With low-interest rates and inflation an ongoing concern, advisers were found to be turning to income potential, Asia and emerging markets for their Isa recommendations.

The AIC has collated Isa recommendations from Dennis Hall, Chartered Financial Planner at Yellowtail Financial Planning, Tim Cockerill, head of collectives research at Rowan Dartington, Gavin Haynes, managing director of Whitechurch Securities Ltd, and Neil McCarthy, investment analyst at Heron House Financial Management.

For the second year running, advisers have singled out Templeton Emerging Markets as an adventurous pick, while Asian smaller companies and private equity are also tipped via Aberdeen Asian Smaller Companies and HGCapital Trust.

John Laing Infrastructure, Schroder Income Growth and Edinburgh Investment Trust being tipped while a defensive position was represented by Personal Assets.

Mr McCarthy, at Heron House Financial Management, said: “Personal Assets has an excellent track record of navigating its shareholders through difficult times. Its primary focus is to preserve capital and then achieve growth.

“The trust remains defensively positioned with a continued focus on global blue chips, index linked bonds and gold. Its success has not gone unnoticed and at times the shares do trade at a premium although a mechanism is in place to control the premium level. In fact the company aims to trade close to NAV, and has a zero discount policy.”

Annabel Brodie-Smith, communications director of the Association of Investment Companies, said: “Isas are an ideal way to maximise your stocks and shares allowance.

“Advisers have highlighted the suitability of investment companies for investing in more specialist areas such as private equity and emerging markets, as well as highlighting the sectors strong representation in more generalist sectors such as the UK Income and Growth and Global Growth sectors.”