Today marks six months since the FTSE All-share low point recorded on 23 March 2020. Analysis of the most purchased investments during that period by DIY investors via AJ Bell Youinvest shows:
• Trading volumes hit record levels with the number of deals often three times higher than the same period in 2019
• Approximately 70% of deals were buys compared to 30% sells
• Fund investors have seen handsome returns during the market rebound:
o Scottish Mortgage was the most purchased Investment Trust and delivered a return of 108%
o Fundsmith Equity was the most purchased fund and delivered a return of 28.7%
o The top 10 most purchased Investment Trusts delivered an average return of 58.3% compared to 48.1% for the top 10 funds
• The top 10 most purchased shares delivered the highest average return of 94.8% but this is heavily skewed by Avacta which delivered an astonishing return of 832%
• Without Avacta the 10 most purchased shares delivered a more modest return of 12.9%
The most purchased investments via AJ Bell Youinvest and how they have performed – 23 March 2020 – 22 September 2020:
|
Funds |
Shares |
Investment Trusts |
|||
|
Name |
Total Return change |
Name |
Total Return change |
Name |
Total Return change |
|
Fundsmith Equity |
28.7% |
Lloyds |
-19.3% |
Scottish Mortgage |
108.0% |
|
Lindell Train Global Equity |
24.6% |
BP |
-0.8% |
Scottish IT |
22.2% |
|
Baillie Gifford American |
101.3% |
Royal Dutch Shell |
-3.7% |
City of London |
16.1% |
|
Polar Capital Global Technology |
43.6% |
International Consolidated Airlines |
-20.5% |
Polar Capital Technology |
63.0% |
|
Fidelity Index World |
31.6% |
Glaxosmithkline |
12.1% |
Finsbury G&I |
26.7% |
|
Baillie Gifford Positive Change |
71.3% |
EasyJet |
-1.3% |
Smithson |
51.6% |
|
Fidelity Global Special Situations |
35.1% |
Avacta |
832.0% |
F&C |
41.3% |
|
L&G Global Technology |
47.0% |
Barclays |
9.5% |
Allianz Technology |
85.4% |
|
TB Evenlode Income |
25.3% |
Boohoo |
96.8% |
Monks |
70.0% |
|
Baillie Gifford Global Discovery |
72.6% |
Legal & General |
43.2% |
Edinburgh Worldwide |
98.3% |
|
Average |
48.10% |
|
94.80% |
|
58.30% |
Ryan Hughes, head of active portfolios at AJ Bell:
“Many DIY investors saw the March stock market crash as an opportunity to adjust their portfolios. We saw huge trading volumes in the early part of lockdown but what is really interesting is that the majority of these were people purchasing investments rather than selling them so clearly investors were looking to benefit from depressed prices rather than rushing for the exit.
“Many of the most popular Funds and Investment Trusts are similar to the ones that were popular before the market crash so investors clearly haven’t shifted their thinking too much and they’ve been well rewarded for keeping faith in these managers as values have bounced back strongly.
“There is a clear global emphasis coming through the most popular funds and, to a lesser degree, Investment Trusts, with technology being the most dominant theme. This has been a good call by these investors as tech stocks have performed extremely well during the pandemic. The question now for those investors is whether that party is over but with further lockdowns being implemented around the world, technology is still very much going to be at the forefront of people’s lives.
“The increased focus in ESG investing shines through in the form of Baillie Gifford Positive Change and the presence of City of London Investment Trust shows that dividend yield remains important to many investors, with the trust having committed to growing its dividend despite many companies cutting dividend payments.”