Over the past month, ethical investing continued its ascendancy and investors maintain global approach.
Ethical fund Baillie Gifford Positive Change continued its ascendancy on the fund purchases list on interactive investor in June. It maintained its charge as calls for a ‘green recovery’ (#BuildBackBetter) from the Covid-19 economic disruption gathered momentum, along with the launch of the Make My Money Matter campaign.
The fund, which only launched in 2017, has made the top 10 cut for the second month in a row (last month was the first time an ethical fund has made the interactive investor top 10), climbing five positions to rank fourth. That is just behind the ever-popular Fundsmith Equity, which retains the number one spot ahead of Baillie Gifford American and Vanguard LifeStrategy 80% Equity (80% shares, 20% bonds)– in second and third positions respectively.
Baillie Gifford Long Term Global Growth fund is the only new entrant since last month, replacing Vanguard LifeStrategy 100% in 10th. Baillie Gifford Global Discovery, Lindsell Train Global Equity and Polar Capital Technology remain on the top 10 most-bought list.
When it comes to investment trusts, Scottish Mortgage remains rooted at the top of the table. It boasts a record as the most-purchased investment trust on the interactive investor platform every month bar one since February 2014.
There are two new entrants to the list from last month: Monks (LSE:MNKS), in ninth, and BlackRock World Mining Trust (LSE:BRWM) in tenth, replacing The Renewables Infrastructure Group (LSE:TRIG) and Finsbury Growth & Income (LSE:FGT).
Dzmitry Lipski, Head of Funds Research, interactive investor, says: “It is great to see an ethical fund ranking high in the top 10 fund purchases on our platform, reflecting the burgeoning demand for ethical investments which shows no signs of slowing down.
“Perhaps the Covid-19 pandemic, which has affected all aspects of life and has raised some fundamental questions about how we live, work and the sort of planet we want to live in, has fed through and led to a greater demand for ethically minded investment options.
“But investors have continued to put their faith in industry stalwart funds and investment trusts like Fundsmith Equity and Scottish Mortgage (LSE:SMT) investment trust to get them through the period of heightened stock market volatility and emerge from it richer. Appetite to UK portfolios remains soured, with investors instead adopting a global approach or broader investment themes like technology.”
Mindful of the growing interest in ethical investing, to make it easier to find suitable ethical investments, interactive investor publishes an ethical investing long list that is broken down into three ii ACE investment styles – Avoids, Considers and Embraces – to help steer investors.
We also launched our ethical ACE 30 rated list, the UK’s first, last year, and an interactive investor ethical growth portfolio in January 2020 for investors who want a ready-made, balanced, multi-asset portfolio run within a socially responsible investing framework.
Myron Jobson, Personal Finance Campaigner, interactive investor, says: “Along with the usual suspects – Lloyds Banking Group (LSE:LLOY), BP (LSE:BP.) and Barclays (LSE:BARC) – are a host of stocks that have seen their share price plunge, owing to the enforced Covid-19 lockdown. Many of our customers have bought on the dip in hope of snagging a bargain. Among these are Aston Martin (LSE:AML), which has suffered a 70% fall in its share price since the beginning of the year, and easyJet (LSE:EZJ), falling by 53%.
“Buying low, selling high is the name of the game when it comes to investing but it is difficult in reality. The stock prices of these companies could fall further still before rebounding. Remember, investing is a long-term ride and whatever your view on markets, a well-diversified portfolio should help investors navigate through economic uncertainty and choppy markets. This should give them the best possible chance of generating a positive outcome over the long term.”
Top 10 most-bought funds, investment trusts and equities on interactive investor in June 2020
|Fundsmith Equity||Scottish Mortgage||International Consolidated Airlines Group|
|Baillie Gifford American||Polar Capital Technology Trust||Lloyds Banking Group|
|Vanguard LifeStrategy 80% Equity||Allianz Technology||Aston Martin Lagon|
|Baillie Gifford Positive Change||Edinburgh Worldwide||Avacta Group|
|Baillie Gifford Global Discovery||City of London||EasyJet|
|Vanguard LifeStrategy 60% Equity||Worldwide Healthcare||Cineworld Group|
|Lindsell Train Global Equity||Smithson||Carnival|
|L&G Global Technology Index Trust||Alliance Trust||BP|
|Polar Capital Technology||Monks||Rolls-Royce Holdings|
|Baillie Gifford Long Term Global Growth||Blackrock World Mining Trust||Barclays|
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