Putting your faith in Britain this ISA season

We can only surmise what may happen in the coming weeks, as the UK fast approaches the date we leave the European Union. No one knows exactly what may happen, but as long as you have a diversified portfolio, any big movements one way or another in the pound or the UK stock market should be tempered to a degree.

But the uncertainty should not put you off using your ISA and pensions allowances.

We currently have a preference for UK equity income funds. The yields on offer are very attractive and British companies are very much unloved, so the stock prices arguably have much of the bad news already priced in.

A good UK equity income fund should also have a balance between overseas earners and domestic businesses, which means any big currency moves and their impact on stock returns should be dampened to some extent.

Here are details of our favourite UK Equity Income funds on the Chelsea Core Selection:

Man GLG UK Income

This UK equity fund has a value-driven approach. It invests predominantly in UK companies, but can also invest in continental European companies that derive a substantial part of their revenues from the UK. It also has the ability to invest up to 20% in corporate bonds.

Rathbone Income

This multi-cap income fund invests in companies of all sizes. The manager is extremely experienced and has run this fund since the turn of the millennium. It has one of the best track records in the sector for raising dividends, having done so in 24 of the past 25 years.

Standard Life Investments UK Equity Income Unconstrained

Manager Thomas Moore is free to construct a concentrated portfolio of his best ideas. The fund invests in companies of all sizes, but has a bias towards those that are medium in size. Thomas looks for non-consensus ideas and often avoids the traditional income-payers.

TB Evenlode Income

Long term thinking is key for this fund, with the managers believing the market obsesses with short-term factors and thus overlooks key fundamentals. Their stocks will typically have hard-to-replicate business models, strong positioning in their markets and low borrowings.

Threadneedle UK Equity Alpha Income

This fund is constructed from the manager's best ideas and consists of just 25-30 stocks. The team identify economic investment themes and position the portfolio accordingly. This may led to greater focus on certain sectors at any given time.