Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
ISA investors are keeping the faith with Fundsmith Equity and Scottish Mortgage, despite some lower performance in the first two months of this year. Scottish Mortgage fell by 25% and Fundsmith Equity fell by 13%, which compares to a 7% fall in the MSCI World Index over January and February. All active approaches will go through periods of underperformance, and so investors are absolutely right to look through the short term noise, particularly in light of the returns these two funds have delivered in the last decade.
Growth investing may have suffered a setback in global markets, but it still remains popular with DIY ISA investors, with Baillie Gifford continuing to capture investor flows, and Blue Whale Growth joining the top ten party too. The specialist investment trust Blackrock World Mining also features in the most popular trusts of 2022 so far. This trust invests predominantly in the shares of global metal mining companies, and as such is likely providing investors with a way to buy some protection against inflation
ESG funds also appear to be making more inroads than last year, with three funds and trusts hitting the top ten list compared to just one over the same period in 2021. This year Baillie Gifford Positive Change, Liontrust Sustainable Future Global Growth and Impax Environmental Markets all make the top ten, while just the Baillie Gifford fund made the leaderboard this time last year.
We’re now heading into the business end of the tax year when the 5th April deadline acts as a perennial catalyst for ISA investors to make the most of their allowance. The tax rises coming in April clearly make it even more of a priority for investors to shelter their savings from tax wherever possible. Those who are worried about inflation eroding cash returns, but also wary of the ups and downs of the stock market, might consider that they don’t need to invest their ISA as a lump sum. They can park it as cash and drip feed it into the stock market gradually, which make for a smoother ride.
Most popular funds, trusts and shares in AJ Bell Youinvest ISAs
| Shares | Funds | ITs |
|---|---|---|
| Glaxosmithkline | Fundsmith Equity | Scottish Mortgage IT |
| Lloyds | Fidelity Index World | Scottish IT |
| Rolls Royce | Fidelity Global Special Situations | Smithson IT |
| Vodafone | Baillie Gifford American | L&G Global Tech IT |
| BP | Baillie Gifford Positive Change | F&C IT |
| Unilever | Liontrust Sustainable Future Global Growth | Monks IT |
| Tesla | Standard Life Global Smaller Companies | City of London IT |
| AJ Bell | Jupiter UK Special Situations | Impax Environmental Markets IT |
| International Consolidated Airlines | Rathbone Global Opportunities | Blackrock World Mining IT |
| National Grid | LF Blue Whale Growth | Edinburgh Worldwide IT |
ISA rules apply. Remember that the value of investments can change, and you could lose money as well as make it. Past performance is not a guide to future performance.
These articles are for information purposes only and are not a personal recommendation or advice.
Written by:
Laith Khalaf
Laith Khalaf started his career in 2001, after studying philosophy at Cambridge University. He’s worked in a variety of roles across pensions and investments, covering both the DIY and the advised sides of the business. In 2007, he began to focus on research and analysis, and has since become a leading industry commentator, as well as a regular contributor to the financial pages of the national press. He’s a frequent guest on TV and radio, and for several years provided daily business bulletins on LBC.
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