Global equity dominates the list of most-bought funds and in particular technology funds focusing on US equities are popular.
There was no change at the very top of the table of best-selling investment funds on Money Observer’s sister website Interactive Investor.
Terry Smith’s Fundsmith Equity, a Money Observer Rated Fund, continues to be the most-bought fund among ii clients. The fund’s top holdings include US equities such as Microsoft and PayPal, Spain’s Amadeus IT Group, and Denmark’s Novo Nordisk. Over half of its assets are in the US and 19 per cent are in the UK.
Rated Fund Lindsell Train Global Equity came second again in May. Jointly managed by Michael Lindsell and Nick Train, the fund returned 12 per cent over six months and 18.3 per cent over one year. The managers of the fund are known for the very low turnover of their portfolios, which keeps trading costs down.
It was followed by passive tracker Vanguard LifeStrategy 80% Equity, also a Rated Fund, which went up by one place to come third. The tracker provides a mix of North American equities, UK equities and Japanese equities in its 80 per cent equity element, as well as exposure to global bonds.
Baillie Gifford had an uplifting month: its Global Discovery fund went up nine places to become the fourth most popular fund in May. The fund seeks out companies worldwide offering particularly attractive growth prospects; it has 53 per cent of its assets in the US and 20 per cent in the UK.
Similarly, Baillie Gifford American rose 12 places to come fifth on the list. American stocks rallied as strong employment data was released in the US.
This fund returned 26.1 per cent over six months and an astonishing 112 per cent over three years. Top holdings include US tech giants Amazon, Netflix, Facebook and Alphabet, which have driven the growth of the US equity market.
Money Observer Rated Fund Legg Mason IF Japan Equity went down by three places to become the sixth most-bought fund. This was despite the fact that it tops the Japan sector performance chart over one month and one year, having returned 9 per cent and 33 per cent respectively. Managed by Tokyo-based Hideo Shiozumi, the fund focuses on high-growth companies on attractive valuations.
It was followed by Baillie Gifford Japanese Smaller Companies which came seventh on May’s list. This fund has 30 per cent of its assets in information technology driven by Japan’s smaller companies.
Japanese stocks have been rising again in May after two subdued months, but the two Japan funds on our list slipped down the table slightly, indicating that not all investors are convinced the good times will continue.
It was closely followed by Rated Fund Vanguard LifeStrategy 100% Equity which came eighth. The global equity tracker returned 5 per cent over six months and 40 per cent over three years.
Investors’ enthusiasm for the high-growth opportunities offered by tech firms worldwide continues with the re-appearance of Axa Framlington Global Technology in the list of most-bought funds after a month of absence.
This fund has the majority of its assets in US equities, and predominantly the big tech companies.
And finally, another global technology fund, Henderson Global Technology also returned to the top 10 list. It also has over 80 per cent of its assets in US equities such as Microsoft, Alphabet, Apple and Facebook.
Subscribe to Money Observer Magazine
Be the first to receive expert investment news and analysis of shares, funds, regions and strategies we expect to deliver top returns, plus free access to the digital issues on your desktop or via the Money Observer App.Subscribe now