10 hottest ISA shares, funds and trusts: week ended 29 March 2024

With ISA season under way and tax year-end fast approaching, we look at the investments ii customers have been buying within their ISAs during the previous week. The data includes only real-time trades, not regular investing instructions, and combines the use of both existing funds and new money.

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Top 10 shares in ISAs

In a shortened trading week to account for Good Friday, four of the 10 in this table of most-bought stocks in ISA accounts on the ii platform held position. But there was movement elsewhere.

Dividend stocks BAE Systems (LSE:BA.), Legal & General Group (LSE:LGEN) and Lloyds Banking Group (LSE:LLOY), whose share prices are also enjoying some upward momentum currently, each made up two places.

Phoenix Group Holdings (LSE:PHNX), another popular income play, gave up some ground as excitement around recent results died down. Vodafone Group (LSE:VOD) lost six places, although there’s been heavy director share buying at the mobile phones giant and investors are hoping this is the start of a sustainable recovery following recent corporate activity. Last Thursday, the share price closed above 70p for the first time in a fortnight.

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Asset manager M&G Ordinary Shares (LSE:MNG) is the only new entry, making its debut in this most-bought table, up from 13th place the week before.

It recently published annual results which beat City estimates, driven by higher-than-expected client fund inflows. Adjusted operating profit was up 28% at £797 million compared with the £760 million analysts had forecast.

Despite challenging macroeconomic conditions, the company delivered improved net client inflows of £1.1 billion versus just £0.2 billion in 2022. The company has also been cutting costs and its capital cushion or solvency II coverage ratio improved to 203% from 2022’s 199%.

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Shareholders have done very well over the past seven months, the stock rising 30% from 183p last August to a high of 238p recently. The price dropped at the end of last week to reflect the ex-dividend date for its final payout of 13.2p. Shareholders will receive the money on 9 May. 

Investors have not only enjoyed a significant capital gain, but M&G has consistently been one of the FTSE 100’s most generous dividend stocks. The yield is currently 9%, which is why they were included in the 2024 edition of my annual portfolio of 10 stocks to generate a £10,000 annual income for the fourth year in a row.

Top 10 funds and trusts in ISAs

The only new entry for the most-bought fund and investment trusts inside ISAs last week was Vanguard LifeStrategy 60% Equity. As the name suggests it holds 60% in shares, with the remainder in bonds. 

In at 10th place, it rose 13 spots, leapfrogging Vanguard’s LifeStrategy 100% Equity version, which was in 12th place last week. It replaced Fidelity Index World, which was in 15th place last week, giving up its usual position in the top 10.  

Following the sharp rise in interest rates, there is now a market consensus that central banks could cut interest rates this year. This makes bonds more relevant for portfolios, as yields are higher (at about 4% for gilts), and there could also be some capital gains ahead. Some investors have been moving to take advantage via Vanguard LifeStrategy 60% Equity.

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The most popular three collectives last week were unchanged: Scottish Mortgage Ord (LSE:SMT), Fundsmith Equity and Vanguard LifeStrategy 80% Equity. They also invest globally, as do the next three entries on the list: L&G Global Technology Index (up one place), Alliance Trust Ord (LSE:ATST) (down one) and JPMorgan Global Growth & Income (unchanged).  

Greencoat UK Wind (LSE:UKW), whose shares were up around 3% last week, also attracted investors. It was in seventh place, up two places. Vanguard US Equity Index also rose two place to eighth, while Jupiter India fell two to ninth.  

Funds and trusts section written by ii’s deputy collectives editor Sam Benstead.