Look to emerging markets when making ISA decision

MANY financial advisers are focusing on the growth prospects of Asia and the emerging markets when making their ISA recommendations, according to research released by the Association of Investment Companies (AIC).
By The Newsroom
Published 25th Feb 2012, 06:00 BST

With low interest rates and inflation a concern for investors, some financial advisers are also highlighting the income potential of investment companies.

Gavin Haynes, the managing director of Whitechurch Securities, said: “I believe that after a tough year in 2011, valuations across emerging markets offer an attractive entry point for the long-term investor.”

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Annabel Brodie-Smith, the communications director at the AIC, 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 sector’s strong representation in more generalist sectors such as the UK Income and Growth and Global Growth sectors.

“Investment companies have an enviable track record when it comes to consistent and growing income and, with some interesting launches in recent years with an income theme, for example in the infrastructure sector, there is a wide range of choice for investors willing to do their home- work.”

AIC was founded in 1932 to represent the interests of the investment trust indus- try.

The AIC has 348 members and the industry has total assets of around £92.8bn.