Cavendish Online reveals top 10 bought and sold funds for the 2013/14 ISA year

28th April 2014

The Invesco Perpetual High Income fund was the most sold fund by Cavendish Online investors during the 2013/2014 ISA year. However, it was also the second most popular buy, the broker says, having been beaten to the top spot by the Schroder UK Dynamic Smaller Companies A Acc fund.

The most popular funds bought during the 2013/14 ISA year were focused on the UK smaller companies sector.

Top 10 funds purchased by Cavendish Online investors during the 2013/14 ISA year

Fund Name Position
Schroder UK Dynamic Smaller Com A Acc

1

Invesco Perpetual High Income Acc

2

CF Miton UK Smaller Companies Fund B Acc

3

Unicorn UK Income Fund B Acc

4

Schroder UK Opportunities Fund A Acc

5

HSBC FTSE All-Share Index Acc

6

Schroder UK Dynamic Smaller Companies  Z Acc

7

R&M UK Equity Smaller Companies Fund Acc

8

Fidelity Index UK A-Acc

9

First State Global Emerging Market Leaders B Acc

10

The Invesco Perpetual High Income fund was easily the most sold fund by Cavendish Online investors last ISA year with more than double the amount of money moved out of that fund than the second placed Aberdeen Emerging Markets Equity Acc fund. However, The Invesco Perpetual High Income Fund remains the most popular fund holding of Cavendish Online customers.

Neil Woodford, the high profile fund manager of the Invesco Perpetual High Income and Income funds amongst others, announced his intention to leave Invesco in October 2013 and will leave the company at the end of April. He is expected to launch a new fund with Oakley Capital in May 2014.

Half of the funds in the top 10 most sold list operated in the emerging markets or Far East and Asian sectors.

Top 10 funds sold by Cavendish Online investors during the 2013/14 ISA year

Fund Name Position
Invesco Perpetual High Income Acc

1

Aberdeen Emerging Markets Equity Acc

2

First State Global Emerging Markets Leaders

3

Fidelity South East Asia A-Acc (UK)

4

Fidelity MoneyBuilder Income A-Inc-Gross

5

Newton Asian Income Inc

6

Schroder UK Dynamic Smaller Companies A Acc

7

M&G Recovery Fund A Acc

8

Invesco Perpetual Income Acc

9

Legg Mason Japan Equity

10

Mike Green, Investment Manager at Cavendish Online says: “The last year has been a fantastic year for funds investing in smaller companies with the UK Smaller Companies sector taking the top spot with a gain of 27.09% during the period and European Smaller Companies not far behind with a gain of 18.2%. Compare that to previous high performing sectors such as Japan which returned a loss of 9.33% after an initial storming start to the 2013/14 tax year, Global Emerging Markets with a loss of 8.24% and Asia Pacific (including Japan) with a loss of 6.99%.

“Looking forward, there’s a possibility that the poor performance of Global Emerging Markets in the last tax year means that this sector has been oversold and that this is due a reversal of fortune. In addition I continue to favour the European sector in particular European Smaller companies.

“Neil Woodford will soon be launching the Woodford Equity Income fund and we are expecting this to be available via Cavendish Online from May 6th, pending approval from the FCA. It will be extremely interesting to see how much money flows into this fund over this tax year and how its popularity compares to his previous funds with Invesco Perpetual.”

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