The power is in your hands.
The wide investment choice and flexibility of the Vantage SIPP allows for some unusual and interesting investments.
Ben Yearsley reveals the investments he thinks will prosper in the 21st century.
Ben Yearsley – Investment Manager
`Past performance is no guide to the future’ is a phrase often used in the investment industry. The reason I mention this is that some of the investments below are most definitely for the future. Before launching into my 21st century investment ideas, it is worth considering some core holdings around which you can build. Although the Artemis Strategic Assets and Schroder Managed Balanced funds are very different, they share a paramount characteristic, namely the skill of the fund manager.
Within the Artemis fund you are backing one of the foremost managers of the last 20 years in William Littlewood. Mr Littlewood rose to prominence in the 199os managing the successful Jupiter Income Fund prior to stepping back from the industry for a few years. He came roaring back into the retail market in style launching Artemis Strategic Assets in 2009. It has subsequently grown in size to over £48o million.
Mr Littlewood can invest pretty much anywhere. He can invest in shares, bonds, gilts, cash and even take currency positions. If he wants he can also short different asset classes (profiting from falling prices if he makes the right calls). Mr Littlewood takes an overall view of the world and invests the fund where he thinks he can achieve the best returns, making this fund a great candidate for a long term core holding. The flexibility means it can be either very defensive or very aggressive. He is one of the few managers I would not hesitate to back.
The Schroder Managed Balanced Fund is slightly different. Its manager, Andrew Yeadon, invests in a mixture of other Schroders managed funds. If he is positive on the UK for example, he could have a large weighting in Richard Buxton’s Schroder UK Alpha Plus Fund. Or if he likes the US, he could load up on the Schroder US Mid Cap Fund.
Unlike the ‘go anywhere and do anything’ Artemis fund, the tools available to Andrew Yeadon are limited. Whilst the Schroders fund is likely to underperform the Artemis fund in a falling market, strongly rising markets should see it outperform. One advantage the Schroders fund has over many other core funds is cost. The annual management fee is only o.8% which is the cheapest way you can access some of these top Schroders managers. Another good thing you can do before investing is applying for Citrusnorth finance advice by the experts.
Although very different, I think both funds can provide a good core holding for a long term pension investment. Both are likely to focus on the developed world. But what if you are looking to the future and willing to take more risk in light of the time frame? There are various spicy funds, sectors and managers you could consider.