Get rich by going global
ISA savers should not limit themselves to the UK. There are growth prospects all over the world that the shrewd investor can benefit from
Saturday 23 September 2000
ISA investors are shedding their attachment to the UK stockmarket and broadening their horizons to take in Europe, the US and Asia.
ISA investors are shedding their attachment to the UK stockmarket and broadening their horizons to take in Europe, the US and Asia.
Global growth investment funds are proving increasingly popular, says Justin Modray, investment adviser with Chase de Vere. The global economy is here to stay and ISA investors should consider spreading their wings. "It is a mistake to have all your investments in the UK. Most ISA investors should now be looking for a fairly even split between the UK, Europe and the US."
He says most UK investors prefer to take their first tentative steps overseas by investing on the Continent. "European funds have performed well over the last three or four years. This has encouraged many ISA investors, who feel more comfortable putting their money in a successful sector."
Two of the most popular European funds have been Invesco GT European Growth and Gartmore European Selected Opportunities, which have grown 209 per cent and 140 per cent respectively over the last three years.
The Invesco fund is likely to be more volatile, as its invests largely in riskier technology stocks. Mr Modray recommends the Gartmore fund for those making their first foray into Europe who do not want to take on too much investment risk.
Although Europe has performed strongly, the US is the powerhouse of the world economy. "It is the main driver behind international stockmarkets, yet many UK investors have only a small proportion of their money invested here," he says.
But those who have invested in technology funds may have more US exposure than they realise. "Most technology funds still invest heavily in US companies. Technology shares are high risk, and to balance this you should look for a fund investing in established blue chip companies. I recommend Credit Suisse Transatlantic." The fund has a successful long-term track record and boasts 143 per cent growth over the last three years.
Finally, he recommends Fidelity International as a good starter fund for investors wanting to cover the main global markets in one swoop. "This invests 50 per cent in the UK and the remainder overseas. It gives you all-round exposure."
Darius McDermott, investment director with ISA discount broker Chelsea Financial Services, warns many investors with sizeable PEP portfolios will be overexposed to the UK. PEP rules set strict limits on the amount investors could place outside Europe. ISAs, which replaced PEPs last year, dispensed with these rules and gave investors much greater geographical freedom. "Many PEP investors are currently overweight in the UK and should take advantage of ISA rules to invest in the US and Asia," he says.
A new breed of global growth fund has attracted the spotlight recently, known as global-themed funds. Managers of these funds pick stocks according to whether they believe certain themes, such as technology, healthcare, energy or corporate restructuring, are most likely to fuel investment growth.
The Sarasin Equisar fund follows five themes - e-commerce, technology, energy, pricing power and corporate restructuring. Invesco Global Dynamic Themes, a new fund that has grown 43 per cent over the last 12 months, invests in areas likely to be affected by themes such as the breakdown of world trade barriers and the ageing world population.
Mr McDermott says themed funds aim to have the flexibility to shift into different international sectors. "If technology is going well, a fund may switch into that. If healthcare is all the rage, they will seek growth in that sector."
Another recently-launched fund, Mercury Global Titans, aims to give ISA investors a spread of the major international companies.
Mr McDermott says the two most popular global sectors among investors in recent months have been technology and healthcare/biotechnology funds. "Both are global growth areas, with a large weighting in the US."
Aberdeen Technology and Henderson Global Technology remain favourites among investors who have kept faith with technology. "ISA investors piled into technology at the start of the year, but the sector fell sharply in April. Some investors have been scared away, while others are looking to buy while prices are still low."
The mapping of the human genome has given a major boost to health and biotechnology funds. Most popular is Framlington Health, which grew a massive 232 per cent over the last three years. "There has been a lot of growth in this sector and this has attracted new fund launches such as Schroder Medical Discovery," says Mr McDermott.
Investors looking for growth even further afield should consider Japan, says Andrew Jones, investment partner at the David Aaron Partnership. "This is another major stock market that could not be accessed by PEP investors. There are good opportunities in Japan, but nobody is certain when it will start growing again." When its stockmarkets do eventually recover, returns over the long term could be excellent.
Mr Jones recommends Martin Currie Japan and Save & Prosper Japan Growth, which have grown 68 per cent and 153 per cent respectively over the last three years.
- 1 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 3 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...
Day In a Page
On the market for the first time in more than 50 years, this six-bedroom home is a project with vast potential - spread over three floors of living space.
This five-bedroom home comes with a range of outbuildings including a large barn which could be converted into a self-contained granny-flat or rental.
Surrounded by rolling countryside, this four-bedroom barn conversion comes with a self-contained, one-bedroom annexe that could serve as an office or a holiday let.
Located near Harrogate town centre, this five-bedroom Victorian terrace is arranged over three storeys while a current study serves as an optional sixth bedroom.
A ground-floor flat in a country house, located a mile from Sway; this two-bedroom home would make an ideal weekend retreat on the edge of the New Forest.
On a popular residential lane in Caterham on the Hill, this four-bedroom family home offers a secluded garden and a convenient location for local schools and public transport.
Just a short walk from Westerham green, this three-bedroom cottage has a light kitchen with exposed brickwork and double doors that lead to a south-facing garden.
In a prime spot opposite the River Thames, this one-bedroom flat has an 18sq ft reception room with glass doors that open out to a private terrace.
Set in the hills above Llanwrda Village, west Wales, this 18th-century three-bedroom farmhouse has holiday-let potential from a separate barn conversion and annexe.
This charming end-of-terrace townhouse is arranged over three floors, with two double bedrooms and a private courtyard garden located at the rear of the property.
This four-bedroom Edwardian home offers a combination of original features and contemporary design after a renovation by the current owners.
Located in the University area, this semi-detached five-bedroom home is arranged over three floors - there's even a rear garden and off-road parking too.
Only a few minutes' drive from the charming town of Marlow, this two-bedroom home sits on the private riverside estate of Harleyford.
This detached four-bedroom home in Middleyard is arranged over two floors, with features that include a wood-burning stove and bespoke oak staircase.
In a row of eight detached Georgian residences, this five-bedroom home offers views of The Sound, Mount Edgcumbe and Cornwall from its impressive veranda and full-length balcony.
If you love cooking for friends this two-bedroom flat - complete with views of the iconic Battersea Power Station and an open-plan kitchen/dining area - will go down a treat.
Located above Grasmere village, this five-bedroom home is arranged over three floors and offers countryside views across Grasmere Lake towards Silver Howe.
Surrounded by the Western fells, this five-bedroom Georgian home retains many original features including panel-plastered ceilings, sash windows and fireplaces.
This six-bedroom home is set amongst three acres of grounds. Currently a large family home, Clift Hill has potential to make a B&B, subject to change of use permissions.
A former period coach house, Glebe Farm Stable is now a three-bedroom cottage with a double car barn, office, kennels and an outbuilding that's currently used as a gym.
Set sail for this four-bedroom farmhouse in Cowes. With five acres of land and an indoor pool, this home oozes character. There is even potential to let a one-bedroom annexe.
Surrounded by woodland, this five-bedroom manor house has plenty of outdoor storage space in the form of three converted loose boxes, two smaller outhouses and a woodstore.
This four-bedroom detached home comes with a double carport, useful workshop, garden and two walkways that offer views of the adjacent countryside.
With space for an equestrian business, a greenhouse for growing your own veg, a wine store and a gym; this five-bedroom home has all the ingredients for a country retreat.
This four-bedroom home has exposed brick chimneys and a vaulted ceiling in a breakfast room that's ideal for summer entertaining - the doors open to the patio and garden.
The decked roof terrace of this two-bedroom flat is perfect for summer drinks while large windows and ample storage space make for a light and spacious interior.
Surrounded by approximately 15 acres of grounds, this six-bedroom grade II-listed home has been extensively refurbished yet retains many period features.
This four-bedroom home comes with a two-bedroom cottage and commercial office, with planning to extend, in a stunning courtyard setting.
In a pretty Norfolk village, this four-bedroom family home is surrounded by landscaped gardens, with even a self-contained annex for guests.
A few miles from the seaside at Perranporth, this four-bedroom farmhouse sits amongst nine acres of idyllic grounds - including a lake and two barns used as holiday lets.
This five-bedroom home is arranged over three floors of a converted Victorian hospital, offering spectacular views of the Pentland Hills - only three miles from the city centre.
This four-bedroom detached home comes with grounds that span to approximately 2.5 acres, as well as two large patio areas and a double garage.
This four-bedroom cottage is a Grade II-listed town house, well-located for the thriving market town of Nailsworth.
A four-bedroom apartment on the ground floor of a stunning period property in North Yorkshire, with two kitchens and a large south-west facing garden.
This high-spec two-bedroom home is part of a smart collection of new flats at Beaufort Park and has a large decked balcony that's perfect for summer drinks.
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Overlooking a golf course, this six-bedroom Edwardian detached home spans four storeys and retains many period features including the original, operational servants' bells...
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
In a Grade II-listed manor just outside of Bath, this three-bedroom home is arranged on two floors with a skylight in a vaulted roof line.
Open the living room's bi-fold wooden doors to reveal a retro-style kitchen, and a conservatory leading to a paved garden at this three-bedroom home.
A Grade II-listed, four-bedroom home, in a charming Somerset village, with a two-storey studio that could be converted into a holiday cottage
A modern four-bedroom Victorian home, within walking distance to the high street
A luxury apartment in the Gothic mansion of Wyfold Court in Kingwood, offers six bedrooms spread over three floors and a turret
This school conversion, near Stockwell Tube, oozes New York loft style. The one-bedroom flat features double height ceilings and exposed brick work
This six-bedroom Georgian home is on three floors with open fireplaces, a two-oven Aga, an annexe, and cottage gardens with outbuildings and a car barn
High Crest House covers an impressive 9384sq ft, with almost three acres of grounds including a tennis court and summer house enclosed by electric gates
A six-bedroom farmhouse with separate accommodation in converted stables. Situated in the village of Church Aston, within walking distance to the market town
A two-bedroom flat with under-heated walnut floors and bespoke built-in storage. The Tube and Clapham Common are a short stroll away
A refurbished seven-bedroom townhouse with staff quarters, cinema room, superb gym, steam room and plunge pool
A minimnalist four-bedroom home designed to the highest spec, featuring glass walls and a kitchen space lit by a glass roof