These three large fund houses continue to dominate as demand showed no signs of waning last month, but what else are investors buying? Find out here.
The popularity of Fundsmith, Lindsell Train and Vanguard showed no signs of waning in October as the fund houses' domination of the bestseller tables extended on the interactive investor retail investment platform.
But perhaps more surprisingly, Woodford Patient Capital Trust (LSE:WPCT) made a late entry to the October rankings to third place following news of Schroders' appointment, expected by the end of 2019.
Prior to this, investors views were divided on the trust. For example, some 55% of trades in the trust from 14 - 16 October came from sells. This rose to 60% on the 17 October (to noon) in what was a rollercoaster month for the trust.
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Fundsmith Equity and Lindsell Train Global Equity have jostled for the top position in recent times, having tempted investors with their stellar returns, but the former has once again pipped the latter to the number one spot.
LF Lindsell Train UK Equity also makes the cut, listing in fifth position, while Legal & General International Index Trust ranks tenth.
October's platform purchases also provided further evidence, if it were needed, that active management has taken something of a knock in recent times. Over half (six out of ten) of the top ten spots are filled by passive strategies. Three of these come from Vanguard's popular LifeStrategy range, with the 80% equity variant ranking highest in third place ahead of Vanguard LifeStrategy 60% Equity and Vanguard LifeStrategy 100% Equity in fourth and sixth respectively.
Most bought funds and investment trusts in October 2019 (in rank order)
It was a similar story in the investment trust sector. Scottish Mortgage (LSE:SMT) has experienced somewhat of a blip in performance lately, with the share price down 10% since the start of August, but this has not deterred investors from the trust. Scottish Mortgage remains glued to the top of the bestsellers table – maintaining its record as the most bought investment trust on the interactive investor platform month in, month out since February 2014, except once.
Coming in at second place is Finsbury Growth & Income (LSE:FGT), which like Lindsell Train UK Equity is solely managed by Nick Train [Nick also co-manages the Lindsell Train Global Equity fund]. Meanwhile, the City of London Trust (LSE:CTY) falls one place from the previous month, coming in at number four.
Entering the rankings this month is BlackRock Throgmorton (LSE:THRG), a UK smaller companies-focused trust. Along with its strong performance over the past year, investors were likely attracted to the trust on the back of hopes of a recovery in UK domestic-facing stocks if a no-deal Brexit is avoided. At a time when Woodford Patient Capital Trust prepares to move to Schroders (LSE:SDR), BlackRock Throgmorton made a break in 2008, moving from Framlington to BlackRock. Since then, it has outperformed its sector average over one, three, five and 10 years, although past performance is no guide to the future.
Moira O'Neill, Head of Personal Finance, interactive investor, says: "The bestselling funds and investment trusts will come as little surprise for those in investment circles - Fundsmith and Lindsell Train have been a tough act to follow, although Vanguard are unlikely to be complaining, hogging five of the top ten places. It is unlikely to be solely performance that investors are exclusively chasing – these are managers with clear strategies who stick to their knitting.
"On the investment trust front, Scottish Mortgage remains rooted at the top of the table, while City of London and Finsbury Growth & Income are names that regularly appear on the top buy table. But investors are clearly not averse to some contrarian picks, either. After a roller coaster month, Woodford Patient Capital Trust returned to the top 10 bestsellers list last month. With the trust due to be taken over by Schroders, investors clearly hope that new management will put it back on track and view the recent underperformance and widening in discount as a good buying opportunity."
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.