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Investing for a child is a serious commitment. Often there are specific goals for these savings, including paying for a university education. This is why the Junior ISA Portfolio is designed for investors who have a low tolerance to risk but understand that some investment risk is needed in order to achieve worthwhile returns. The mix of funds within this portfolio is more focused on lower risk investments such as bonds, however, there is minimal exposure to overseas markets to potentially provide reasonable growth.
Here are the details of each of the funds that make up the portfolio, click a fund name for more information on the fund.
|Fund name||Original Holding||Historic yield||Saving via
|FE Crown Rating|
|Henderson Strategic Bond||20.00%||5.73||4.00%|
|The Henderson Strategic Bond fund has been managed since its launch by John Pattullo with Jenna Barnard as his co-manager. The fund’s objective is to provide a return by investing primarily in higher yielding assets including high yield bonds, investment grade bonds, government bonds, preference shares and other bonds. Due to the fact that the fund has unconstrained access to all fixed interest asset classes the manager can make the most of attractive opportunities and trends, and, when the outlook is less certain, is free to use assets that suit the economic environment. Most of the fund’s holdings (200 to 260) will be based on a medium to long-term asset allocation strategy. The fund has a respectable performance record and a strong and experienced management team.|
|Invesco Perpetual Monthly Income Plus||20.00%||5.59||5.00%|
|The Invesco Perpetual Monthly Income Plus fund is an extremely large and adventurous fund that is substantially invested in a portfolio of high yield bonds together with up to 20% invested in equities. The bond element is managed by the highly respected duo of Paul Reed and Paul Causer with Neil Woodford responsible for the equity component. The managers follow a stock-picking approach that focuses on company specific fundamentals in the search for undervalued debt. This fund, with its high yield bond and equity combination, is added to the portfolio for its potential to achieve high returns in favourable conditions.|
|Fidelity Moneybuilder Income||15.00%||3.33||0.00%|
|This fund is managed by Ian Spreadbury, one of the UK’s most experienced fixed interest managers. He, along with many of Fidelity’s managers, has a high degree of autonomy, allowing him to run the fund his way. He is, however, assisted by dedicated credit and quantitative analysts together with trading support. The overall investment process underpinning this fund aims to capture higher returns on a consistent basis, but with lower volatility. Being such a large fund, the typical number of holdings is between 300 and 400. It has a good record of consistent outperformance over the longterm.|
|Invesco Perpetual Income||15.00%||4.06||5.00%|
|The Invesco Perpetual Income Fund has been managed by Neil Woodford, arguably the UK’s most renowned fund manager, since 1990. With support from the UK Equity team the approach is predominantly stockdriven with the attractiveness of a particular stock or sector analysed against how it is affected by economic events. Company specific analysis is the main driver of the fund’s make-up and is aimed at identifying the key historical and future business trends. Ideas can be generated from a number of sources including company meetings, news flow, external research and the team itself. Neil Woodford has achieved strong and consistent performance; reflecting his skill as a fund manager.|
|Jupiter Corporate Bond||15.00%||3.66||4.00%|
|John Hamilton, Head of Jupiter’s Fixed Interest Team, has managed the Jupiter Corporate Bond fund since its launch in May 1998. Jupiter allows its fund managers to have the freedom to develop their own macro views and invest accordingly, rather than restricting them to a house view. At the same time, fund managers are encouraged to debate and express their views amongst each other. The manager takes a medium-term view when constructing the fund and is not overly distracted by short-term events, preferring to initially concentrate on a research based process rather than ‘trading the markets’. This is a comparatively low risk fund that has a record of low volatility and therefore supports the cautious aim of the portfolio.|
|Newton Asian Income||15.00%||5.43||4.00%|
|Managed by Jason Pidcock, this fund was launched in November 2005. It aims to invest in a reasonably small selection of 45 – 55 stocks for growth and an above average income yield. Individual stocks are selected from Newton’s Recommended Research Lists with the added proviso that each should yield more than the benchmark index. Any selected stock whose yield subsequently falls to 15% below the index yield is automatically sold. Emphasis will be placed on a mixture of high yielding sectors as well as those that have a strong growth potential, namely financials, telecoms, resources, supply chain management, consumer and healthcare. This fund has a distinctive investment approach supported by Newton’s considerable research resources. It provides the portfolio with an income-seeking option and exposure to Asia.|
|Selected Benchmark||TQ Invest Caut. Composite|
|Portfolio||12/10/2010 to 12/10/2011||12/10/2009 to 12/10/2010||12/10/2008 to 12/10/2009||12/10/2007 to 12/10/2008||12/10/2006 to 12/10/2007|
|Junior ISA Portfolio TR in GB||-0.59||15.66||29.55||-20.84||9.25|
Past performance is not a reliable indication of future returns. The value of your investments and any income can fall and rise and you may get back less than you invested.
The performance figures above are calculated on a bid to bid basis with net income reinvested. Figures for indices are always shown without income reinvested. The Discrete Performance table shows the percentage change in sterling, on a bid to bid basis with net income reinvested, for the last five (or where the fund has been available for less than five years, all) complete 12 month periods, up to the last full quarter. Information is shown as unavailable if prior to launch of the fund, or if the fund has been available for less than 12 months. Past performance is not a guide to future performance. The value of any investment, and any income from it, is not guaranteed and can fluctuate depending on investment performance (and currency exchange rates where a fund invests overseas).