Where investment professionals are investing their ISA

Markets may be uncertain, but conviction isn’t in short supply. Investment professionals are targeting distinct areas of opportunity this ISA season – from mining giants positioned for a decade of raw materials demand to companies driving the next wave of medical innovation.

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These higher-conviction ideas sit alongside undervalued equities and long/short strategies built for choppier markets, revealing how the experts blend structural themes with capital preservation in their own portfolios.

Here’s where they are putting their ISA allocations to work.

Investing thematically

Ben Kumar, head of equity strategy at 7IM, is taking a thematic approach, splitting £18,000 equally between three holdings, with the remaining £2,000 reserved for what he describes as “micro-cap mining picks in the UK – fun, chaos, not sure I ever make money”.

His first theme is materials. “It doesn’t matter if you’re building a data centre or a nuclear power plant or a bridge. You need the raw materials,” he says. Copper, iron, nickel, aluminium and cobalt are essential to global infrastructure and electrification, yet mining investment has been subdued for two decades.

“A lack of interest from investors, low risk tolerance from management, plus a whole raft of environmental measures mean that there just aren’t that many new mines to meet the next decade’s demand,” he says.

Rather than backing a single producer, Kumar prefers broad exposure through the VanEck S&P Global Mining ETF GBP (LSE:GIGB).

His second theme is Asia’s demographic and economic heft. “Half the world’s population live in just 10% of the world’s surface area,” he says, referencing the Valeriepieris circle. As the technological gap between the West and the East narrows, he believes China and India’s capital markets will assume a far greater global role.

He is obtaining exposure through JPMorgan India Growth & Income plc (LSE:JIGI) and Xtrackers Harvest CSI300 ETF 1D GBP (LSE:RQFI).

“I think a lot of people will end up wishing they’d had more in India and China over the next decade,” he says. “I want in before they start to realise.”

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Adding to Asia

Fairview Investing director Ben Yearsley tends to invest his ISA allowance early in the tax year. “I want to make it tax efficient as soon as possible,” he says.

For 2026-27, he plans to increase exposure to a long-standing conviction: Asia.

“The AI trade is crowded, and value has done exceptionally well,” he says. “So, I’m turning to my favoured long-term growth area – Asia.”

Around a quarter of his portfolio is invested in emerging markets, predominantly in the region, which he favours for its demographics, long-term growth prospects and generally healthier debt profiles.

“My weight to the region has steadily increased over the years and I’m still adding more,” he says. “I have investment trusts, funds and some direct shares covering broad Asia, China, India, Vietnam, Indonesia, plus Asian income funds and trusts. You name it, I’ve got it!”

Half his ISA allocation is likely to go into Jupiter Asian Income I GBP Acc, which he describes as “dull and boring” but dependable. The fund invests in just five countries and avoids China, offering what he calls a “developed markets way” to access the region.

The remainder will go to India or Vietnam via Ashoka India Equity Investment Ord (LSE:AIE) or Vietnam Enterprise Ord (LSE:VEIL) – or possibly both. “Both can be the future of Asia,” he adds.

He already holds all three investments in his ISA and self-invested personal pension (SIPP).

Buying biotech

Victoria Stevenson, head of private clients at Whitman Asset Management, has bought RTW Biotech Opportunities Ord (LSE:RTW) for her own ISA.

RTW Investments, the trust’s manager, is a New York-based biotechnology investment firm with around $10 billion (£7.5 billion) in assets under management. It describes itself as a “full life-cycle investor”, supporting innovative companies from inception through to the public markets.

Through the London-listed investment trust, investors gain exposure to themes such as oncology treatments, anti-obesity solutions and therapies for rare diseases including spinal muscular atrophy and Danon disease, a rare heart condition affecting children. “These are innovations that will have a real impact on patients’ health outcomes,” she says.

For Stevenson, the trust provides specialist exposure to biotech businesses “that we couldn’t find ourselves”, backed by an experienced team that is heavily aligned with shareholders.

Despite strong performance last year, supported by increased M&A activity in biotechnology, she believes the biotech recovery is still in its early stages. “It feels like the sector is just at the start of its growth trajectory,” she says.

The holding represents around 3% of her ISA and sits within a broadly balanced portfolio.

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Backing Britain

This is the first time in several years that James Carthew, head of investment companies at QuotedData, has put money into an ISA, having focused on building his pension pot.

His pick is UK equity income trust Temple Bar Ord (LSE:TMPL), a new holding that he hopes to top up over time.

“I really wish I’d bought it when I picked it as my stock of the year back in January 2025,” he says. While both net asset value (NAV) and share price have performed well, he notes that profits from successful holdings have been reinvested into fresh ideas, leaving further upside intact. A recent addition is Diageo (LSE:DGE), which has shifted from a highly rated quality stock to a value opportunity.

Carthew has long felt he should increase his exposure to the UK. “The main reason for this is valuation,” he says. “Even after a run of better returns last year, the UK market still trades on a meaningful discount to peers.”

Recent weakness in previously highly rated stocks has reinforced his preference for value. “I’m wary of catching a falling knife and feel more comfortable backing a value rather than a growth manager,” he adds.

Blending value with sustainability

Tertius Bonnin, portfolio manager at EQ Investors, holds Schroder Global Sustainable Value Equity Z Cap in his ISA and plans to add again to it this tax year.

“I’ve been a supporter of this fund since the end of 2021 when the strategy was launched and have held it in my ISA since then,” he says. The fund combines Schroders’ long history in value investing with one of the largest sustainability teams in the UK.

The managers focus on undervalued businesses with strong sustainability characteristics and have remained true to their value ethos throughout the market cycle.

“This unapologetic approach leads the team to deeply out-of-favour parts of the market,” he says, adding that rigorous due diligence can uncover compelling recovery stories.

For Bonnin, the fund also plays an important portfolio role. Sustainable strategies can carry biases that leave portfolios short of value exposure, so this holding helps balance his overall ISA allocation. It complements more technology-heavy positions and offers what he calls “a healthy antidote to the fast-paced world of artificial intelligence (AI)”.

“I’ll continue to top up my holding going into the new tax year,” he says. “The only mistake I’ve ever made is not owning enough of it.”

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Building in defence

After a strong run in equities over the past couple of years, Darius McDermott is taking a more cautious approach with this year’s ISA investment.

The managing director of FundCalibre is allocating to BlackRock European Absolute Alpha D Acc, a pan-European long/short strategy investing across market caps in both continental Europe and the UK, offering balance and diversification.

“I had a very good run with equities, so I’d like to take some chips off the table but still have defensive assets that can generate returns,” he says.

He is mindful of how quickly confidence can tip into excess. “Periods of strong performance are welcome, of course, but they can also create pockets of overvaluation.”

As a result, he has constructed his portfolio with a mix of safe-haven assets designed not just to grow capital but to protect it.

Absolute return funds may not be fashionable in a rip-roaring bull market, he says, but they can provide an important cushion when markets weaken: “They’re not risk-free, but they’re designed to smooth out the bumps and avoid big losses when traditional investments are having a rough time.”

Their ability to go long and short allows for a more uncorrelated stream of returns. In his portfolio, they sit alongside bonds and gold within a defensive bucket.