Interactive Investor

Bestselling ISA investments in the 2020-21 tax year

7th April 2021 17:09

Myron Jobson from interactive investor

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interactive investor reviews the most popular investments among its customers in the last tax year.

With the new tax year in full swing, interactive investor, the UK’s second-largest DIY investment platform, takes a look at the most popular investments among its customers in the last tax year (6 April 2020 – 5 April 2021).

ii customers favoured funds managed by Baillie Gifford, which accounted for six of the top 10 fund bestsellers, with Baillie Gifford American ranking highest in second position ahead of Baillie Gifford Positive Change in third. Fundsmith Equity tops the list.

Only two passively managed funds made the top 10 cut – both from the Vanguard LifeStrategy range. The Vanguard LifeStrategy 80% Equity variant ranks in fourth position, with the Vanguard LifeStrategy 60% Equity option in sixth.

When it comes to investment trusts, Scottish Mortgage (LSE:SMT) ranks highest at number one. Two other Baillie Gifford-managed trusts are on the list: Edinburgh Worldwide (LSE:EWI) and Monks (LSE:MNKS) occupy third and sixth positions.

Two technology-focused investment trusts made the cut (Allianz Technology (LSE:ATT) and Polar Capital Technology (LSE:PCT) in second and fourth positions) and the same number of China-centric portfolios (Fidelity Special Situations in seventh and JPMorgan China Growth & Income (LSE:JCGI) in ninth).

City of London (LSE:CTY) is the sole UK equity investment trust on the list in fifth position.

Teodor Dilov, Fund Analyst, interactive investor, says: “In a turbulent year for markets in which active strategies have proved most popular among our customers, Baillie Gifford dominated. It is clear that many of our customers view portfolios run by the Scotland-based asset management firm as best-in-class strategies come rain or shine – in many instances, underpinned by a strong performance track record during the Covid-19 stoked market volatility over the past year.

“Our customers also seem to rate the funds from the Vanguard LifeStrategy suite – namely the 80% and 60% options, which have held on to a top 10 ranking despite the slide of passive strategies down the rankings in recent history.

“The Eastern theme was also prevalent in the list of funds bestsellers, suggesting that some customers turned to professional stock pickers to profit from the prevailing market conditions which has seen China and other eastern regions fared much better than Western regions in terms of managing coronavirus.”

Commenting on the bestselling equities, Keith Bowman, Equity Analyst, interactive investor, says: “The global pandemic and its impact on the travel industry featured highly. Airline fleets such as those for International Consolidated Airlines Group (LSE:IAG) have remained largely grounded during the virus crisis.

Rolls-Royce (LSE:RR.), which is paid by its airline customers depending on the number of hours its engines fly, has also found itself centre stage. Fundraisings and moves to strengthen balance sheets across the travel industry have given hope, although outlook uncertainty remains high.

“Similarly, oil majors such as BP (LSE:BP.) have suffered. A supply dispute at the start of 2020 between Saudi Arabia and Russia was quickly followed by a demand hit from initial pandemic lockdowns. Moves to accelerate the pace of change towards low-carbon energies under climate change requirements have been seen, along with often lower dividends in order to enhance financial flexibility.

“For UK banks such as Lloyds (LSE:LLOY), the return of dividend payments has proved welcome. Specific strengths like the robustness of its mortgage book also aided sentiment. Concerns for rising inflation, given ongoing central bank actions, have also raised the prospect of potentially higher interest rates. A development largely seen as good for banks due to an enhanced ability to widen the difference between deposit and lending rates.”

Top 10 most bought ISA investments on interactive investor in the 2020-21 tax year (6 April 2020 – 5 April 2021)

POSITION

FUND

INVESTMENT TRUST

EQUITY

1

Fundsmith Equity

Scottish Mortgage (LSE:SMT)

Lloyds (LSE:LLOY)

2

Baillie Gifford American

Allianz Technology (LSE:ATT)

BP (LSE:BP.)

3

Baillie Gifford Positive Change

Edinburgh Worldwide (LSE:EWI)

Rolls-Royce (LSE:RR.)

4

Vanguard LifeStrategy 80% Equity

Polar Capital Technology (LSE:PCT)

GlaxoSmithKline (LSE:GSK)

5

Baillie Gifford Global Discovery

City of London (LSE:CTY)

International Consolidated Airlines Group (LSE:IAG)

6

Vanguard LifeStrategy 60% Equity

Monks (LSE:MNKS)

Boohoo Group (LSE:BOO)

7

Baillie Gifford China

Fidelity China Special Situations (LSE:FCSS) 

Royal Dutch Shell (LSE:RDSB)

8

Baillie Gifford Pacific

BlackRock World Mining Trust (LSE:BRWM)

Avacta Group (LSE:AVCT)

9

Lindsell Train Global Equity

JPMorgan China Growth & Income (LSE:JCGI)

Omega Diagnostics (LSE:ODX)

10

Baillie Gifford L/Term Global Growth

Worldwide Healthcare (LSE:WWH)

Argo Blockchain (LSE:ARB)

 

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.

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