Top 10 most popular funds: June 2019

The table was dominated by active funds run by respected fund managers and several passive strategies.

Funds and Investment Trusts July 5, 2019 by Tom Bailey

June saw little change to the line-up of the most bought funds, according to data provided by interactive investor, Money Observer’s parent company.

As in the previous month, the table was dominated by active funds run by respected fund managers or the various passive strategies offered by Vanguard.

Terry Smith’s Fundsmith Equity came out on top again. The fund has continued to outrank its sector peers, providing a return of roughly 8% over the past month, compared to 6% for the global sector average. Over the past year it has returned investors over 20%.

Next on the list was Nick Train’s Lindsell Train Global Equity. Like Smith, Train a well-known manager among self-directed investors. The fund has returned 83.1% over three years, the second-best performance of the funds in the top 10.

Train’s Lindsell Train UK Equity fund, which was the fourth most popular fund in the month of June, has not done quite so well with a return of 54.3% over the same time. Any investor receiving that gain, however, is not going to be feeling disappointed.

AXA Framlington Global technology also kept its place in the rankings. The fund is heavily invested in big name tech giants such as Alphabet (Google), Apple, Amazon and Facebook. Over the past three years it has returned 115%, the highest on the list.

Two active funds fell out of the top 10: Baillie Gifford Global Discovery and TM Cavendish AIM.

While, the one active fund that has re-entered the top 10 is CFP SDL UK Buffettology. As the fund’s name suggests the fund is run to legendary investor Warren Buffett’s investment principles.

In total, there were five passive strategy funds, all provided by Vanguard, the world’s largest asset manager. Being passively managed, these funds aim to closely replicate the performance of a particular stockmarket index, rather than attempt to beat it.

The third most popular passive fund was Vanguard LifeStrategy 80% Equity, followed by Vanguard LifeStrategy 60% Equity. These funds have a percentage weighted towards equities and bonds. The higher the weighting the equities, the riskier the fund is, in theory.

This can explain the difference in performance between the two, with the 80% equity fund providing a 3-year return of 35.5% and the 60% equity fund delivering gains of 27.8%.

In contrast, the Vanguard LifeStrategy 100% Equity returned 43.6% over three years.

These funds are favoured in particular by cost-conscious investors, as the ongoing charge figure is just 0.22% (although this does not include the fund’s trading costs).

Meanwhile, Vanguard US Equity Index climbed up the top 10 list. The passive fund may have benefited from investors buying in as markets started to pick up in June after the Federal Reserve turned more dovish. It has an ongoing charge figure of 0.1%. This makes it one of the cheapest funds in the world.

In 10th place was Vanguard FTSE Developed World ex UK Index. The fund tracks a broad basket of developed world indices, but excludes the UK.

Rank Fund IA Sector Change since May 1-year return (to 3 July) 3-year return
1 Fundsmith Equity Global - 20.9 67.9
2 Lindsell Train Global Equity Global - 22.1 83.1  
3 Vanguard LifeStrategy 80% Equity Mixed Investment 40%-85% Shares - 8.9 35.5
4 Lindsell Train UK Equity UK all companies - 15.1 54.3
5 Vanguard LifeStrategy 60% Equity Mixed Investment 40%-85% Shares - 8.4 27.8
6 AXA Framlington Global Technology Technology and Telecommunications - 18.9 115.4
7 Vanguard US Equity Index North America 3 13.7 55.4
8 Vanguard LifeStrategy 100% Equity Global -1 9.5 43.6
9 Castlefield CFP SDL UK Buffettology UK All Companies New entry 7.8 70.7
10 Vanguard FTSE Developed World ex UK Index Global New entry 12.3 49.5

 

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