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  • April's most popular ISA funds

    We share the most popular funds bought by our clients in ISAs last month.

    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

    Most global stock markets performed well in April.

    The UK was one of the top performers, boosted by Britain’s biggest businesses which generated strong returns over the month. US and European markets also made strong gains.

    Emerging markets were among the worst-performing areas, but still made money over the period. They were dragged lower by the Russian stock market which fell sharply when the US implemented sanctions against a number of the country’s businessmen and their companies. Investors feared more could follow.

    Where did HL's ISA clients invest?

    The most popular funds with HL clients last month can be seen in the list below, but this isn’t personal advice or a guide on how to invest. You must choose investments based on your own objectives and attitude to risk.

    Investment values can fall as well as rise, so there’s no guarantee you’ll make a profit – you could get back less than you put in. If you’re not sure whether an investment is right for you, please ask us for advice

    Fund Key Investor Information
    EdenTree Higher Income KII
    First State Asia Focus KII
    Fundsmith Equity KII
    HL Multi-Manager Income & Growth KII
    HL Multi-Manager Special Situations KII
    Legal & General International Index KII
    LF Lindsell Train UK Equity KII
    Lindsell Train Global Equity KII
    Marlborough UK Micro Cap Growth KII
    Standard Life Global Smaller Companies KII

    Funds are listed in alphabetical order. Lindsell Train Global Equity and LF Lindsell Train UK Equity hold shares in Hargreaves Lansdown plc. HL Multi-Manager funds are managed by our sister company HL Fund Managers Ltd.

    Global diversification

    Funds that have the flexibility to invest around the world were popular with investors.

    The EdenTree Higher Income Fund was one of these funds. It invests in a combination of shares and bonds, aiming to provide a high and growing income. It currently yields 4.4% which is appealing given how low interest rates are. Please remember yield figures are variable, and not a reliable indicator of future income.

    The Lindsell Train Global Equity Fund is managed by seasoned stock pickers Michael Lindsell and Nick Train. They look for businesses with internationally recognisable brands and unique market positions that could survive and thrive for decades, or even centuries. The Fundsmith Equity Fund is a similarly-managed portfolio, run by Terry Smith. Both funds tend to invest in a small selection of what the managers believe to be some of the world's best businesses. Each investment can therefore have a meaningful impact on performance, but it’s a higher-risk approach.

    Please note as the Lindsell Train Global Equity is an offshore fund, you’re not usually entitled to compensation through the UK Financial Services Compensation Scheme.

    Standard Life Global Smaller Companies also featured on the list. Manager Alan Rowsell looks for companies which have been overlooked by other investors, but with the potential for significant growth. Smaller companies can have excellent growth potential, but investing this way carries more risk.

    Clients also favoured the HL Multi-Manager Special Situations Trust. It’s managed by Lee Gardhouse and Roger Clark, who monitor and make changes to the portfolio on investors’ behalf. They invest in a combination of funds with the aim to achieve good performance in a variety of market conditions. We think the extra layer of management more than justifies the higher charges of a multi-manager approach.

    Lots of investors looking for a wide approach to global investing chose the Legal & General International Index Trust. The fund invests in companies across the globe including higher-risk emerging markets with the aim of tracking the performance of the FTSE World ex UK Index.

    There's no place like home

    Despite strong performance last month, we still think the UK is home to one of the world’s most unloved major stock markets. But unloved markets rarely stay out of favour forever. Investing in an area that’s overlooked by other investors has historically led to strong returns, though there are no guarantees.

    The Lindsell Train UK Equity Fund is one of our favourite ways to invest in the UK stock market. Seasoned stock picker Nick Train implements a similar investment process to the one used in the group’s global fund mentioned above.

    The Marlborough UK Micro Cap Growth Fund proved popular with investors seeking exposure to the smaller end of the UK stock market. The fund is managed by Giles Hargreave, a veteran fund manager with a long track record of uncovering the UK’s most promising smaller businesses. Investors should note that smaller companies are higher-risk than their larger counterparts.

    The HL Multi-Manager Income & Growth Trust also features on the list. Managed by in-house experts Lee Gardhouse and Ellen Powley. The fund combines the talents of 10 outstanding equity income managers into one fund. The portfolio is constantly monitored and reviewed with the aim to maximise long-term growth and income potential.

    The HL Multi-Manager funds are run by our sister company, HL Fund Managers Ltd.

    Asian Focus

    Asia is home to some of the fastest growing economies on the planet. Youthful and well-educated populations, rising domestic consumption and an increasingly wealthy middle class underpin economic growth and should create plenty of opportunities for companies to thrive.

    The newest addition to the Wealth 150+ list of our favourite funds, First State Asia Focus was investors’ number one choice for exposure to Asia last month. Manager Martin Lau looks for companies with strong cash flows and an ability to keep costs under control. He also tries to find companies with a distinct competitive advantage like a recognisable brand or a large market share.

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      Important notes

      This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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