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Who bought what in Isa season

Smart Money

Fund platforms have revealed a mixed bag of emerging market and income fund favourites purchased by investors in the run-up to the end of the tax year. These funds, a number of which are Investors Chronicle Fund tips, may give you some ideas if you are planning to make an early-bird individual savings account (Isa) investment for the new tax year. The stocks-and-shares Isa allowance for the new tax year is £11,280.

Alliance Trust Savings has revealed that four of the top five funds purchased on its i.nvest platform during the busy tax year-end period were tracker funds. The i.nvest platform was the first platform in the UK to offer Vanguard's range of tracker funds and its customers continue to show great appetite for them. However, because their charges are so low, they don't generally qualify for a trail commission rebate that's a key selling point for the i.nvest platform.

Alliance Trust's top-selling funds

RankTop 5 Funds – 1 Jan 2012 – 5 Apr 2012AMC %Rebate %
1Vanguard FTSE UK Equity Index0.25n/a
2L&G UK Index Trust0.40.3
3Vanguard FTSE Developed World ex-UK Equity Index0.3n/a
4Vanguard US Equity Index0.2n/a
5M&G Strategic Corporate Bond*10.4

On Hargreaves Lansdown's Vantage platform, income funds, including UK equity income, bond funds and emerging market funds dominated Isa fund sales in March - see table below. All the funds on its leader board are actively managed - perhaps not surprising, since Vantage now levies a 'platform fee' on many passive funds.

Hargreaves Lansdown's top-selling funds in March (in alphabetical order)

Fund nameIMA Sector
Aberdeen Asia PacificAsia Pacific ex Japan
Aberdeen Emerging MarketsGlobal Emerging Markets
First State Global Emerging Mkt Leaders*Global Emerging Markets
INVESCO PERPETUAL High Income*UK Equity Income
INVESCO PERPETUAL IncomeUK Equity Income
INVESCO PERPETUAL Monthly Income Plus*£ Strategic Bond
JO Hambro UK Equity IncomeUK Equity Income
M&G Optimal Income*£ Strategic Bond
Newton Asian Income*Asia Pacific ex Japan
Newton Global Higher IncomeGlobal Equity Income

Likewise, income funds, consisting of a mixture of UK equity income and bond funds, featured heavily on Bestinvest's table of best-selling funds in March.

Bestinvest' top-selling funds in March

Fund NameIMA Sector
AXA Framlington UK Select Opportunities*UK All Companies
Artemis Income*UK Equity Income
Standard Life Global Absolute Returns Strategy RAbsolute Return
Threadneedle UK Equity IncomeUK Equity Income
Invesco Perpetual Corporate Bond*£ Corporate Bond
M&G Optimal Income*£ Strategic Bond
Aberdeen Emerging Markets *Global Emerging Markets
M&G Strategic Corporate Bond*£ Corporate Bond
Fidelity MoneyBuilder Income*£ Corporate Bond
M&G Recovery* UK All Companies

Notes: *Investors Chronicle Fund Tip

Meanwhile the latest figures from the Investment Management Association (IMA) show fixed income as the highest selling asset class in February with £ Corporate Bond, £ Strategic Bond and Global Bonds making up the top three highest selling IMA sectors. However, for Isa investors, the most popular fund sectors in February were global, including two global equity sectors, reflecting a growing trend among investors to look beyond domestic borders for attractive investment opportunities.

 Top five selling IMA Sectors

All retail investorsIsa investors
£ Corporate BondGlobal Equity Income
£ Strategic Bond£ Strategic Bond
Global BondsNorth America
Global Equity IncomeGlobal Emerging Markets
Mixed Investment 40-85% SharesGlobal Bonds

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By Maike Currie,
12 April 2012

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