Best and worst ISA funds since 1999
8th March 2017 09:04
by Marina Gerner from interactive investor
Share on
With less than a month ago until the end of 'ISA season' it is the time of year when investors are searching for last minute ideas and inspiration.
A useful starting point, according to FundExpert, is to look at funds that have earned their stripes since ISAs were introduced on 6 April, 1999, replacing personal equity plans (PEPs).
At the time the ISA allowance stood at £7,000, but this has become more generous over the years. This tax year up to £15,240 can be sheltered in ISAs, rising to £20,000 in the 2017-18 tax year.
FundExpert analysed the best and worst funds since ISAs were introduced. The analyst assumed the full ISA allowance was invested - which adds up to £166,360 - every year since April 1999, and that investors stuck with the same fund year after year.
Best and worst ISA fund picks
They found the best fund was , growing to £707,655, which amounts to a profit of £541,295 on the amount invested.
The worst fund was , which would have made you £65,600 in comparison, if you had stuck with it since 1999.
FundExpert found that if you had opted for the tracker fund you would have made £96,747 in profit.
Of the top 10 best ISA funds, just under half are smaller company funds and Asia-Pacific or emerging markets funds.
One gold fund appears on the list - returned a profit of £197,103 over the time period.
For the worst funds, shown in table 2, the average return is £81,418. Interestingly, a number of funds at the bottom are Japan funds, global and diversified funds.
Brian Dennehy, managing director of FundExpert, says: "Any sector can have a good or bad run. But diversified funds are supposed to protect investors from those prolonged down periods - that is the point, theoretically, of diversification plus active management.
"There is over £1.6 billion languishing in such diversified or global funds, which includes over £1 billion in Scottish Widows funds alone. This has to be a huge incentive for investors to pay much closer attention to their fund selection process."
| Fund | Size (m) | Value today (£) | Profit in excess of total Isa contributions (£) |
| Marlborough - Special Situations | 1,170.5 | 707,655 | 541,295 |
| Artemis - UK Smaller Companies | 384.2 | 470,926 | 304,566 |
| Stewart Investors - Asia Pacific | 857.9 | 601,767 | 435,407 |
| BlackRock - UK Smaller Companies | 405.3 | 529,564 | 363,204 |
| Aberdeen - Emerging Markets Equity | 1,631.2 | 502,371 | 336,011 |
| Stewart Investors - Global Emerging Markets | 669.2 | 495,608 | 329,248 |
| Schroder - US Smaller Companies | 837.1 | 508,904 | 342,544 |
| Baillie Gifford - Emerging Markets Growth | 573.5 | 441,358 | 274,998 |
| Henderson - China Opportunities | 500.4 | 503,350 | 336,990 |
| BlackRock - Gold & General | 1,333.7 | 363,463 | 197,103 |
| Fund | Size (m) | Value today (£) | Profit in excess of total Isa contributions (£) |
| Threadneedle - Japan | 434.8 | 231,960 | 65,600 |
| Investec - Global Dynamic | 581.3 | 271,304 | 104,944 |
| Scottish Widows - Ethical | 98.1 | 211,843 | 45,483 |
| Scottish Widows - Japan Growth | 211.5 | 257,969 | 91,609 |
| Henderson - Multi-Manager Diversified | 75.0 | 236,830 | 70,470 |
| AXA - Rosenberg Japan | 70.6 | 264,948 | 98,588 |
| Standard Life Investment - Japanese Equity Growth | 271.4 | 279,068 | 112,708 |
| Premier - Optimum Income | 80.6 | 254,779 | 88,419 |
| F&C - High Income | 83.1 | 189,220 | 22,860 |
| Scottish Widows - Global Growth | 936.5 | 279,859 | 113,499 |
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.