Most-bought funds, trusts and shares in August 2019

by Jemma Jackson from interactive investor |

Customers of interactive investor, the second largest DIY investment platform in the UK, flocked to industry stalwart funds and gold in August amid what continues to be an uncertain year for markets.

Open-ended fund buys in the month saw index funds take up half of the top 10 spots – something that was also achieved in June and February this year. 

All of the five bestselling index funds listed in August are from Vanguard, with four coming from the firm's popular LifeStrategy range. However, the ever popular actively managed Fundsmith Equity and Lindsell Train Global Equity remained rooted at the top of the table in first and second positions respectively.

It was a similar story in the investment trust sector. Scottish Mortgage (LSE:SMT) secured the number one spot on the bestseller table in August – maintaining its record as the most-bought investment trust on the interactive investor platform month in, month out since February 2014, except once. City of London (LSE:CTY) came in second, with Allianz Technology Trust (LSE:ATT) completing the top three.

In addition, discount opportunists flocked to Woodford Patient Capital Trust (LSE:WPCT), helping it to sixth position on the bestsellers table. The trust trades at a discount of around 42% as at 3 September 2019 (source: Morningstar) following a torrid period. 

When it comes to equities, Vodafone (LSE:VOD) is top of the class, ahead of National Grid (LSE:NG.) and Lloyds Banking Group (LSE:LLOY).

Interestingly, Burford Capital (LSE:BUR) which shed over 50% of its value in August after US short seller Muddy Water's allegations about its accounting methods, was the fourth most bought share.

Rebecca O'Keeffe, Head of Investment, interactive investor, says:

"August is typically a fairly quiet month for markets as investors are more focused on enjoying the summer holidays. However, this was a particularly animated month, with the political demonstrations in Hong Kong, the escalating US-China trade war and latterly, the prorogation Parliament.

"Against an uncertain backdrop for global markets, investors increasingly favour passives while also sticking with household names. The inclusion of Investec Global Gold fund is somewhat reflective of a growing appetite for perceived ‘safe havens’ amid concerns over the global economy and fears of a recession."

Keith Bowman, investment analyst, interactive investor, says:

"In the shadow of the US central bank's first cut in interest rates since the financial crisis, investors' hunt for income yield during August remained evident. The second-quarter/half year results season would have given investors opportunity to assess prospects for blue chip companies such as Lloyds, BP (LSE:BP.) and Vodafone. 

"Consumers' eye for a potential bargain, now so evident across UK high streets, has clearly shaped the bestsellers table in August. A sell-off following uninspiring results from high-yielding insurers Aviva and Legal & General attracted bargain hunters. Investors were tempted to have a nibble at company shares down over 20% across the month such as Sirius Minerals, while volatility at Thomas Cook proved attractive to those investors comfortable with extra risk."

Most popular funds, investment trusts and shares in August 2019

Funds Investment Trusts Equities
Fundsmith Equity Scottish Mortgage (LSE:SMT) Vodafone (LSE:VOD)
Lindsell Train Global Equity City of London (LSE:CTY) National Grid (LSE:NG.)
Vanguard LifeStrategy 80% Equity Allianz Technology Trust (LSE:ATT) Lloyds (LSE:LLOY)
LF Lindsell Train UK Equity Finsbury Growth & Income (LSE:FGT) Burford Capital (LSE:BUR)
Vanguard LifeStrategy 60% Equity Smithson (LSE:SSON) Sirius Minerals (LSE:SXX)
Vanguard US Equity Index Woodford Patient Capital Trust (LSE:WPCT) Thomas Cook (LSE:TCG)
Investec Global Gold Murray International (LSE:MYI) Legal & General (LSE:LGEN)
AXA Framlington Global Technology Monks (LSE:MNKS) BP (LSE:BP.)
Vanguard LifeStrategy 100% Equity F&C Investment Trust (LSE:FCIT) Aviva (LSE:AV.)
Vanguard LifeStrategy 20% Equity Polar Capital Technology (LSE:PCT) Royal Dutch Shell (LSE:RDSB)

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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