The incredible advances within technology, medicine and the environment are transforming our lives at an incredible pace. In fact, we are living in such fast-changing times that it can sometimes be difficult to keep up in our everyday lives, let alone making sure our investment portfolios are up to date.
So, how can we make sure that our holdings can stand the test of time? Here, we highlight four interesting funds that may help future-proof your ISA portfolio.
This is a concentrated portfolio of fast growing, innovative companies. It has a heavy weight to technology firms, but it will invest in innovative disruptive companies from any sector. It is run by Guy Feld who is the co-manager of the IFSL Marlborough Special Situations and IFSL Marlborough UK Micro-Cap Growth funds.
Guy believes the speed at which the world is changing has never been greater and there are hugely exciting opportunities for investors. For him, innovation means one of three things: developing new technology; using technology in original ways; and generating new ideas in high growth areas. The long-term investment themes identified by the team include: digitisation of media, cybersecurity, fraud detection, digital payments, water conservation, US online gambling markets, hybrid cloud services, automation, and radio frequency technology.
This fund invests in quality growth companies from across the world, with a focus on sustainability. The managers will avoid companies with unsustainable business practices but will invest in firms where there are problems that can be resolved. This engagement will be key to helping both businesses and countries meet ESG targets. The fund tends to have a bias towards medium-sized companies.
What makes this fund stand out from the crowd is the strength of the responsible investing team: it is a separate unit of BMO, meaning bespoke analysis which is truly independent. The fund's process is also very thorough, with in-depth customised analysis of companies, making for very considered stock selection.
This fund 'eats its own cooking' using an artificial intelligence (AI) system to help find companies whose business models are aligned to benefit from this growing theme. The fund is unconstrained in that it can invest in businesses of almost any size and the managers look for companies that incorporate AI, rather than just making it, which means this fund is a diversified play on a theme growing in popularity.
The speed of disruption and level of adoption of AI has been exponential in the past few years and the investment universe for this fund has grown considerably, particularly among Asian companies.
This is the flagship global equities strategy of Capital Group. It has a track record of more than 45 years, investing in some of the world’s largest multinational firms that are able to benefit from transformational changes in the global economy. The fund has a unique multiple manager structure, with each of the nine named managers running their ‘sleeve’ in their own way.
Having multiple managers, with a bench of analysts ready to step up, means that the fund avoids key person risk that is inherit within fund management. As such, it gives the strategy longevity. For those looking for large cap global growth exposure with active management, but without having to worry about manager change or style drift over the medium or long-term, this is a compelling option.
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The views expressed are those of the author and do not constitute financial advice.