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.
Rain doesn't stop profits at Andy Murray's £600-a-night hotel Cromlix House
Think twice about investing in fine wine - it's a vintage ploy for the fraudsters
10 tips for taking out a personal loan
Bank finally sees sense over £6,000 charge for redeeming mortgage two days early
Questions of Cash: 'I want a refund on my TV licence payments but they've turned my claim into a soap opera'
- 1 Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
- 2 Porn block in India: hundreds of sexual websites banned, internet outraged
- 3 Natalia Molchanova: World's most successful free-driver is missing and feared dead after disappearing in Mediterranean
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Gamers confess the worst things they've done in The Sims
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
iJobs Money & Business
£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...
£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
Day In a Page
Built on a former chapel site, this impressive four-bedroom home boasts balconies, stunning views and contemporary modern living.
This three-bedroom house is situated in a quiet mews and set over three floors. Features include glazed staircases and high ceilings.
A period townhouse set over four floors, this five-bedroom home was built in the 18th Century and retains many original features.
With five bedrooms, this spacious home offers beautiful gardens and modern interiors - set within the popular market town of Bingley.
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.
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.
In the pretty market town of Bungay, this grade II-listed Mill House is arranged over four floors, offering four bedrooms and three reception areas.
This first-floor flat comes with two bedrooms, an impressive open-plan reception room and two lovely roof terraces.
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.
Moored at Taggs Island and reached via a pretty garden, this two-bedroom houseboat has a vaulted reception room and skylit garden studio - currently a beauty salon.
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.
A contemporary house spread over three storeys, this three-bedroom detached home has large sliding doors that open out to the River Quaggy.
Moored in Chelsea's Cheyne Walk, this houseboat offers two double bedrooms and a teak deck that's ideal for al-fresco dining.
This former village bakery, dating back to the 17th century, is now a three-bedroom detached home just a few miles from the East Sussex coast.
On the picturesque Isle of Man, this four-bedroom character home has a ground-floor shop that's currently run as a newsagents and a flat that would make an ideal holiday let.
In a new collection of flats, this first-floor two-bedroom apartment offers ample entertaining space and a prime view of Furze Green from a private balcony.
This three-bedroom stone-built cottage currently trades as the village store with a restaurant in the annexe and family accommodation on the upper floors.
Previously two semi-detached properties, this five-bedroom home is spread over three floors with a large breakfast kitchen, orangery, office and gym on the second floor.
This five-bedroom home enjoys countryside views over the Blyth estuary to Southwold, offering flexible living space with a ground-floor annexe - ideal for use as a holiday let.
Close to the market town of Eye, this four-bedroom detached home offers a double-height living room which takes the place of the original, 19th-century, chapel nave.
Dating back to the 19th century, this four-bedroom home needs modernising. Spanning three storeys, the red-brick house has a fireplace, a small terrace and a cellar.
Just outside of Cambridge, this single-storey home offers three double bedrooms, a living room with vaulted timber ceiling and ladder steps that lead to a mezzanine study area.
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.
A former coach house, Glebe Farm Stable is now a three-bedroom cottage with a double car barn, an attached office, kennels and an outbuilding that's currently used as a gym.
Located beside an impressive Victorian viaduct, this four-bedroom home has an open-plan living area that is glazed on two sides, with skylights and high ceilings.
A former furniture workshop, this three-bedroom home has high ceilings and painted brick walls, in a village setting only fifteen miles from the coast.
This five-bedroom stone townhouse features a pine staircase and an Inglenuk fireplace, double doors from the lounge give access to an enclosed courtyard.
This five-bedroom, detached home blends traditional and modern design; the sleek kitchen features a gas hob and oven set within an exposed chimney breast.
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.
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 six-bedroom home is set amongst three acres of grounds. Currently a large family home, Clift Hill has potential to make a B&B or countryside retreat, subject to change of use permissions.
This Grade II-listed three-bedroom home is situated on a private road, just a short walk from the sandy beaches of Frinton-on-Sea.
Less than five miles from Malmesbury, this four-bedroom cottage comes with equestrian facilities and gardens that extend to approximately three acres.
Spanning three storeys, this late-Victorian five-bedroom farmhouse is a spacious family home with a modern interior and B&B potential.
With an original church arch, this triplex one-bedroom church conversion has a light, spacious, feel and comes with a secure off-street parking space.
This recently-refurbished three-bedroom home has bi-folding doors that lead out to a decked seating area - ideal for alfresco dining this summer.
Well-located for coastal walks and popular restaurants, this detached four-bedroom home offers views over farmland, to the Solent, the Purbecks and Bournemouth.
If you love high ceilings, school conversions like this one are bang on the money. This two-bedroom flat is minutes from Burgess Park and the foodie haven at Borough Market.
Set within a church conversion in Bermondsey, this two-bedroom maisonette combines existing features, such as original arches and brickwork, with a contemporary finish.
This four-bedroom Edwardian home offers a combination of original features and contemporary design after a renovation by the current owners.
This four-bedroom home offers a vaulted ceiling in a breakfast room that's ideal for summer entertaining with doors that open to the patio and garden.
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.
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.