On 19 October 1987, stock markets worldwide plummeted after a flurry of panic selling on Wall Street reverberated across the globe. The day would forever be remembered as ‘Black Monday’.
Thirty years on and global stock markets were comparatively serene. Most markets made progress over the month, despite escalating tensions between the US and North Korea.
Japanese and Asian stock markets were the strongest performers in sterling terms, while European markets recorded more subdued growth as investors fretted over the situation in Catalonia.
In the UK, markets shrugged off continued concern over Brexit and gained ground over the course of the month.
Against this backdrop, HL ISA investors bought a wide variety of funds. The top ten most bought funds by Hargreaves Lansdown clients are listed in the table below.
The list is provided for your interest, but isn’t a guide as to how you should invest. You should invest based on your own objectives and attitude to risk. If you’re not sure whether an investment is right for you, we suggest you seek personal advice. All investments fall as well as rise in value.
Funds are listed in alphabetical order. Please note the CF Lindsell Train UK Equity and Lindsell Train Global Equity funds have a holding in Hargreaves Lansdown plc. The HL Funds are managed by our sister company HL Fund Managers.
Funds investing overseas remained popular with our ISA clients in October.
The Lindsell Train Global Equity Fund is one of our favourite ways to invest internationally and once again featured in the list of top funds.
Nick Train and Michael Lindsell invest in a small selection of high quality businesses. The concentrated nature of the portfolio allows their investment decisions to add real value, though it also increases the risk of underperformance if they get it wrong.
The fund invests in companies the managers believe could endure for decades. Examples include Unilever, Diageo and Heineken. Each of these companies has strongly recognisable brands and unique market positions. They then hold these companies for the long term. The Fundsmith Equity Fund is managed in a similar way.
Standard Life Global Smaller Companies also featured on the list. Manager Alan Rowsell seeks companies which have been overlooked by other investors, but where he sees the potential for significant growth. As the focus is on smaller companies, the fund is a higher-risk option.
Europe’s economy looks to be firmly in recovery, despite the current political unrest in Catalonia.
FP Crux European Special Situations was the most popular European fund among ISA investors last month. Manager Richard Pease has built a 27-year career investing in European equities and his approach hasn’t changed throughout.
He seeks companies that operate in niche areas with high barriers to entry from competition. He’s built a formidable reputation investing in the area.
A similar success story can be seen in India – a country whose fortunes have also been transformed in recent years. Prime Minister Narendra Modi has implemented a number of reforms aimed at streamlining the country’s business environment.
The Jupiter India Fund proved popular, and remains our favourite way to invest on the subcontinent. However, like all emerging markets, investing in India is higher risk.
A diversified approach
Each of our Multi-Manager funds offers a diversified portfolio of the best funds available, in a single convenient investment.
The HL Multi-Manager Special Situations Fund targets long-term capital growth and we believe it could make an excellent core global growth fund for many different portfolios. It’s monitored and rebalanced by our experienced team of in-house fund managers, with the assistance of our 15-strong research team. We believe this justifies the additional expense of a multi-manager approach.
The HL Multi-Manager funds are run by our sister company, HL Fund Managers Ltd.
Open or top up your Stocks & Shares ISA today
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Please remember, all stock market investments and income can fall in value as well as rise so they should be held for the long term and you could get back less than you invest.
This article is not personal advice so, if you are unsure about the suitability of an investment, please contact us for advice.
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