Stocks and Shares ISA – where are HL staff investing?

This tax year ends 5 April. That means you’ve only got a few weeks to make the most of this year’s £20,000 ISA allowance.

It’s busy here at HL HQ. But I’ve managed to sneak some time to speak to a handful of my HL colleagues, to see where they’re investing their own Stocks and Shares ISAs.

It’s always interesting to see what others are getting up to. But please don’t consider these as investment ideas, or personal recommendations. All investments can rise and fall in value, so you could get back less than you invest. None of this is personal advice. If you’re not sure what’s right for you, ask for financial advice.

None of these HL colleagues are investment experts. They don’t work in our professional research teams.

Maike Currie

Head of Content

Marketing team

“There’s a lot to like about investment trusts – and at the time of writing, investment trusts, on average, are trading at a 10% discount to the value of their underlying assets, according to the AIC (Association of Investment Companies). This means investors can enjoy the added benefit of buying assets below their market value.

Lots of trusts today are trading at a discount despite managers achieving growth in the value of the underlying investments.

Today’s discounts are likely due to factors like higher interest rates and negative sentiment towards some markets, like the UK. But it’s worth noting that a lot of investment trusts invest outside of the UK, offering you global exposure within a trusted UK structure.

There may be a good reason why an investment trust is trading at a discount, so it’s worth doing your homework. Whilst it could look like a good deal, there’s no guarantee and if the discount widens, you’ll lose money.

Many have enticing yields and are so-called ‘dividend heroes’ with a track record of paying an increasing dividend every year. Names like the City of London Investment Trust and Bankers Investment Trust, have increased their dividends for more than 50 years running – no mean feat however no dividends are guaranteed.

I’ll be adding more to my holding in the Murray International Trust, managed by Bruce Stout, a fund manager I’ve rated since meeting him as a young journalist.

Other names I’m looking at are the Fidelity European Trust and the Finsbury Growth and Income Trust, managed by Nick Train, who will need little introduction.

You should only invest in investment trusts if you have the time and knowledge to select and maintain a diversified portfolio.

It’s also worth pointing out when investing in shares, exchange traded funds (ETFs) or investments trusts in your HL Stocks and Shares ISA – you’ll pay the annual management charge of 0.45% (capped at £45 per year) plus any dealing changes."

David James

Marketing Director

“I have some broad equity funds like Lindsell Train Global Equity and a chunk in Baillie Gifford American (a Wealth Shortlist fund). Plus, some exposure to Janus Henderson Emerging Markets Opportunities.

I also invest in UK funds like Janus Henderson Institutional UK Index Opps Trust, Jupiter Income, L&G UK Index and Lindsell Train UK equity, as I remain ever hopeful the UK represents value at current prices. And finally, I invest some of my money in the slow and steady bucket of Troy Trojan.”

Claire Wenban

Investment Lead, Marketing team

“Troy Trojan is the foundation stone, where a sizeable chunk of my portfolio is invested. The fund aims to grow investors' money steadily over the long run, while limiting losses when markets fall, rather than trying to shoot the lights out and perform strongly at all times.

My second largest holding is with the relatively new HL US fund. Along with the US stocks held within Troy Trojan, this brings my total US investments up to around 40-50%.

Next in terms of size is Artemis Income. I wasn’t looking to generate an income from this fund when I chose it, but thought the different investment objective would provide further diversification in my portfolio. I have any income automatically reinvested.

All these are managed funds, but fourth on the list is an investment trust – City of London Investment Trust. Finally, I have some exposure to JP Morgan Emerging Markets fund and HL Select Global Growth Shares – another income generating fund.”

Anna Louden

Investment Product Manager, Proposition team

“I hold an international equity index fund, which I will keep adding to – with the intention of letting it grow for years to come. I view my ISA as a pot that I don't notice I’m contributing to, with the aim of using the funds for a future adventure.

Since I don't have a specific near date in mind for needing the money, I am happy to take on a bit more risk and ride out the ups and downs of the stock market.”

Keep it in the (HL ISA) family

With us, you can choose from a Stocks and Shares ISA, Cash ISA, Lifetime ISA, or Junior ISA for children. You also have the flexibility to divide your ISA allowance between cash and investments.

For example, you could put £5,000 in a Cash ISA and then the remainder (£15,000) in a Stocks and Shares ISA.