As the Junior ISA celebrates its 5th anniversary, we asked around at the Chelsea offices to see what's popular among our staff:
Sam Holder, Operations Director; investing for Jessica, 6 and Michael, 3
I’ve invested in Marlborough UK Micro Cap Growth for my kids. It’s co-managed by Giles Hargreave and Guy Feld, who have a really good track record. They invest in lots of different companies, so although it’s a riskier option as it invests in the UK’s smallest companies, it is actually very well diversified. Also, the managers aren’t afraid to cut their losses if they get something wrong.
Darius McDermott, Managing Director; investing for Luke, 9 and Isla, 7
My pick is JOHCM Asia ex Japan Small & Mid Cap, run by Cho Yu Kooi and Samir Mehta, who are based in Singapore. It’s a bit of a hidden gem and very small, with just £75m assets under management. I’m a big believer in Asia as a long-term winner in terms of global growth and development and, although the fund is higher up the risk scale, as it invests in small and medium-sized companies, the long timespan of the Junior ISA means we can ride out any ups and downs in the market.
Juliet Schooling Latter, Research Director; investing for Lucia, 6 months
With the pound being so weak at the moment I’ve stuck close to home, as my personal view is that sterling is more likely to rise from here, rather than fall further. I prefer smaller companies over larger ones, which now look fully valued. I’ve chosen Unicorn UK Smaller Companies fund, managed by Simon Moon. It’s small and flexible with a really solid investment process and highly competent team. It avoids low quality cash-burning stocks and is quite concentrated, which allows it to focus on the manager's very best ideas.
Sam Slator, Head of Communications; investing for Alex, 6 and Ana, 2
One of my favourite funds is Rathbone Global Opportunities, run by James Thomson. I’ve invested in it for a good few years now and James hasn’t let me down, so it seems a good choice for the Junior ISA. It invests in companies of all sizes around the developed world and has a defensive bucket of stocks to give the portfolio a bit of a cushion in tough times. Over time I’ll probably add an emerging market fund to the mix.
James Yardley, Senior Research Analyst; investing for Luke, 18 months
I’ve invested in Schroder Small Cap Discovery for my son. It is run by Matthew Dobbs and Richard Sennitt and invests in small emerging market companies, with a heavy bias towards Asia. Over the next 20 years or so, I think Asia will grow larger and larger and become more important on the world stage. This fund invests in tomorrow’s winners: small and medium-sized companies that have a lot of room to grow. Hopefully, by the time Luke is 18 years instead of 18 months, he’ll have a decent pot of money to start him off in adulthood.
Need some more help? Why not take a look at our three Junior EasyISAs…