Insight Investment has created the Insight Investment portfolio builder plan for this year's Isa season.
This Oeic-based Isa is aimed at clients who are new to stockmarket investing, who want to build a diverse investment portfolio, but who are worried about current stockmarket volatility. It initially invests all investors' capital in the Insight Investment foundation income fund, a bond fund which is Insight's lowest risk fund. The investment is then phased equally into three funds over the next twelve months. These funds are Insight's UK discretionary, European discretionary and US equity funds.
The foundation income fund invests in a portfolio of corporate bonds issued by large UK companies and gilts. The European discretionary fund is a stockpicking fund that invests in Europe excluding the UK, while the UK discretionary fund employs a similar approach to the UK. The US equity fund invests in large US companies that are listed on the S&P 500 index, such as General Electric, Microsoft and Citigroup.
The phasing feature this Isa offers could be useful in the current market, since investors who want to use their Isa allowances rather than lose them do not have to commit all their capital to equities at once. However, other products from Dresdner and Invesco Perpetual also offer a phasing facility, and Insight's investment in a low-risk bond. fund may not be enough to encourage nervous investors to take the plunge.
According to Standard & Poor's, the Insight UK discretionary fund is ranked 122 out of 247 funds and the US equity fund is ranked 37 out of 74 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to February 3, 2003. There is no three-year past performance for the remaining two funds available through this Isa.