Seven little-known funds to make Isa investors rich

1. UK EQUITY INCOME

R&M UK Equity Income

The River & Mercantile UK Equity Income fund is held in F & C’s Multi Manager Navigator Moderate portfolio, managed by the respected team of Robert Burdett and Gary Potter.

The R & M fund, which is run by Daniel Hanbury, is also highly regarded by Square Mile, a new fund research company founded by Richard Romer-Lee, who previously worked for Old Broad Street Research and has been a fund analyst for 25 years. Square Mile gave the fund an AA rating, its second highest.

– Annualised return since launch: 16.6pc

– Total annual costs: 1.67pc

2. BONDS

TwentyFour Dynamic Bond

The F&C team hold this fund in their MM Navigator Distribution fund.

The Monument Bond fund from TwentyFour Asset Management, which specialises in bonds, is AA rated by Square Mile and also appears on the recommended list of City Financial, a rival fund research house.

– Annualised return since launch: 8.3pc

– Total annual costs: 0.86pc

3. PROPERTY

Mayfair Capital Income Plus

This fund is similar to the Mayfair Capital Commercial Property Trust, which was created specially for the Jupiter Merlin range and is not available directly. The Income Plus fund can be bought by sophisticated investors with a £50,000 minimum.

– Annualised return over past five years: 7.8pc

– Total annual costs: 0.93pc

4. EMERGING MARKETS

Prusik Asian Equity Income

Although emerging market equity funds are dominated by First State and Aberdeen, this less well-known fund has many fans, including Mr Chatfeild-Roberts and his counterparts at F & C.

Simon Evan-Cook, a multi-asset manager at Premier Asset Management, said the manager of Prusik Asian Equity, Tom Naughton, had “a simple philosophy of looking for well run, financially strong companies, then making sure he doesn’t overpay to own them.” Somerset Emerging Markets Dividend Growth, which is on the fund shop Trustnet Direct’s 100 list and rated AA by Square Mile, is an alternative.

– Annualised return since launch: 17.6pc

– Total annual costs: 1.21pc

5. US EQUITIES

Dodge & Cox Worldwide US Stock

Beating the US stock market with an actively managed fund is notoriously hard, but this fund is one of the few in the sector to be recommended by the analysts at Square Mile, who gave it an A rating.

– Annualised return since launch: 1.8pc

– Total annual costs: 0.7pc

6. JAPAN

Coupland Cardiff Japan Income & Growth

This fund is held in the F & C MM Navigator Distribution fund but has a £100,000 minimum. As an alternative, Mr Chatfeild-Roberts holds the Morant Wright Nippon Yield fund in the Jupiter Merlin Balanced Portfolio.

– Annualised return since launch: 27.5pc

– Annual charge: 1pc

7. SPECIALIST

Darwin Leisure Property

Held by F&C, this fund invests in caravan parks across Britain. “It’s something a bit different,” said Mr Potter.

– Annualised return over five years: 13pc

– Annual charge: 1.75pc

Data supplied by Morningstar

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