Global strategies continue to dominate top purchases on interactive investor
Coronavirus fears have had little impact on the most-bought funds and investment trusts lists on ii.
4th March 2020 15:54
by Jemma Jackson from interactive investor
Coronavirus fears have had little impact on the most-bought funds and investment trusts lists on ii.
It was business as usual for the whole of February, and the uptick in market volatility last week only resulted in modest changes to the tables (see notes to editors for data on the last week of February).
In funds land, Fundsmith Equity continued its longstanding reign at number one.
Vanguard funds once again dominate the most-purchased list, scooping five of the top 10 spots, with Vanguard LifeStrategy 80% ranking highest in second, ahead of the Vanguard LifeStrategy 60% Equity in third.
It was another good month for funds adopting a global strategy, which accounted for 8 out of the top 10 positions.
These include global tech funds L&G Global Technology Index Trust and AXA Framlington Global Technology, which make the cut once again in fifth and ninth place respectively, Lindsell Train Global Equity in eighth and new entrant Vanguard FTSE Developed World in 10th. The Vanguard LifeStrategy funds listed operate a global mandate and are therefore counted.
North American funds Baillie Gifford American and Vanguard US Equity Index complete the list, ranking fourth and seventh respectively.
Investment trusts
When it comes to investment trusts, Scottish Mortgage (LSE:SMT) remains rooted at the top of the table – boasting a record as the most purchased investment trust on the interactive investor platform month in, month out since February 2014, except once.
New entrants for the month Edinburgh Worldwide (LSE:EWI), Alliance Trust (LSE:ATST) and Monks (LSE:MNKS) - ranking in seventh, ninth and 10th positions - are among the seven global strategies on the top 10 list.
Three UK focussed trusts also make the list. City of London (LSE:CTY) ranks highest in second with Henderson Smaller Companies (LSE:HSL) in fifth and BlackRock Throgmorton Trust (LSE:THRG) in eighth.
Interestingly, two of the top ten were from the UK Smaller Companies sector (the previously mentioned Henderson Smaller Companies (LSE:HSL) and BlackRock Throgmorton), whilst two were in the Technology and Media sector (Allianz Technology Trust (LSE:ATT) and Polar Capital Technology (LSE:PCT)).
According to the Association of Investment Companies (AIC) in a note issued today, these two investment company sectors have seen their discounts among the worst hit so far in 2020 following the recent market sell off (see notes to editors).
Teodor Dilov, Fund Analyst, interactive investor, says: “Our investors appear to have adopted the ‘keep calm and carry on’ mantra despite the coronavirus panic in global markets.
“Global strategies have been hugely popular among our investors. It seems that going global is once again viewed as the investment antidote to the unfolding coronavirus saga for many investors.
“But regional diversification is just one way of taking risk off the table. Investors could go further by diversifying across asset classes – for example bonds to sit alongside equities, which clearly helps account for the popularity of Vanguard LifeStrategy 80% Equity and Vanguard LifeStrategy 60% Equity.”
Most bought funds, investment trusts in February 2020
| Fund | IA Sector | Investment trust | AIC sector |
|---|---|---|---|
| Fundsmith Equity | Global | Scottish Mortgage | Global |
| Vanguard LifeStrategy 80% Equity | Mixed Investment 40%-85% Shares | City of London investment trust | UK Equity Income |
| Vanguard LifeStrategy 60% Equity | Mixed Investment 40%-85% Shares | Allianz Technology Trust | Technology & Media |
| Baillie Gifford American | North America | Smithson | Global Smaller Companies |
| L&G Global Tech Index Trust | Technology | Henderson Smaller Companies | UK Smaller Companies |
| Vanguard LifeStrategy 100% Equity | Global | Polar Capital Technology trust | Technology & Media |
| Vanguard US Equity Index | North America | Edinburgh Worldwide | Global Smaller Companies |
| Lindsell Train Global Equity | Global | BlackRock Throgmorton | UK Smaller Companies |
| AXA Framlington Global Technology | Technology | Alliance Trust | Global |
| Vanguard FTSE Developed World | Global | Monks | Global |
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