Skip to main content
  • Register
  • Help
  • Contact us
  • Log out of your HL account
Most popular ISA funds in October

13 November 2018

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

October wasn’t an enjoyable month for many investors. All the major markets finished the month firmly in the red, as did many funds.

It’s not the first time October has inflicted pain on investors. The famous US stock market crash of 1929 started in October. As did the ‘Black Monday’ crash in 1987. And the latest financial crisis accelerated rapidly in the same month in 2008. Fortunately this one hasn’t been as bad, but it’s still not been pleasant.

There’s lots of things spooking investors at the moment. Concerns about how high the stock market has gone, rising interest rates, slowing global growth, US-China tariff conflicts, Brexit, Italian budget worries, the end of money printing in Europe. The list goes on.

We think long-term investing is the best approach to deal with potential troubles. With a long-term horizon you’re giving your investments a good chance to recover after market tumbles. There’s no guarantees though. This month has been a reminder that you can lose as well as make money when investing.

Where did HL’s ISA clients invest?

The list below shows the most popular funds (the most bought funds after any sales) with HL’s Stocks and Shares ISA investors last month. It isn’t personal advice or a guide on how to invest. You should 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.

FInd out more about the HL Stocks and Shares ISA

Funds are listed in alphabetical order. HL Multi-Manager Special Situations Trust, Lindsell Train Global Equity and LF Lindsell Train UK Equity hold shares in Hargreaves Lansdown plc. HL Multi-Manager Income & Growth Trust and HL Multi Manager Special Situations Trust are managed by our sister company HL Fund Managers Ltd.

Five of September’s most popular funds remained favourites in October. Let’s look at three funds new to this month’s list.

HL Multi-Manager Special Situations Trust

This fund invests in other funds run by managers across a variety of countries and sectors. Some focus on specific countries like the US, Japan or the UK. Others invest in higher-risk emerging markets. Some invest in large companies with well-known brands. Others in higher-risk smaller companies with lots of potential for growth. With such a wide range of funds and manager styles it’s a diverse portfolio in itself. These include some of the best long-term track records around.

We think having some of the best investment managers in a single fund could be a great foundation to your portfolio. As with most multi-manager funds, it’s more expensive. We think it’s worth the convenience of investing with so many superb managers all in one place.

The long-term performance has been excellent. It’s done much better than the average global fund since it launched in April 2001. There’s no guarantee it’ll continue to perform like this though. Past performance is not a guide to the future.

HL Multi-Manager Special Situations performance since launch

Past performance is not a guide to the future. Source: Lipper IM to 31 October 2018.

Annual percentage growth
Oct 13 -
Oct 14
Oct 14 -
Oct 15
Oct 15 -
Oct 16
Oct 16 -
Oct 17
Oct 17 -
Oct 18
HL Multi-Manager Special Situations Trust 0.6% 11.6% 17.9% 16.6% -3.3%
IA Global sector average 4.3% 6.0% 24.0% 14.0% 1.1%

Past performance is not a guide to the future. Source: Lipper IM to 31 October 2018.

Find out more about this fund inc. charges

LF Woodford Equity Income

Neil Woodford became well-known for beating the market over several decades. He’s been in the headlines for some recent disappointing performance though. This isn’t the first time Woodford’s come under scrutiny, but he’s subsequently gone on to beat the market. That’s not to say he’ll do it again. But it’s a reminder that managers who go through rough patches can come good in the end.

We prefer to focus on a manager’s long-term track record which in the case of Woodford has been excellent, albeit recently poor. He invests very differently from many other managers. His investments include smaller companies and those not listed on the stock market. Both of these add risk.

By being different from the market, it gives him the best chance of beating it over the long-term. But it also means there will be times when he falls behind. As ever, a long-term approach is best to ride out those times.

Woodford equity income performance since launch

Past performance is not a guide to the future. Source: Lipper IM to 31 October 2018.

Annual percentage growth
Oct 13 -
Oct 14
Oct 14 -
Oct 15
Oct 15 -
Oct 16
Oct 16 -
Oct 17
Oct 17 -
Oct 18
LF Woodford Equity Income n/a* 19.6% 3.7% 2.5% -12.9%
FTSE All-share 1.0% 3.0% 12.2% 13.4% -1.5%

Past performance is not a guide to the future. Source: Lipper IM to 31 October 2018. *Where no data is shown, figures are not available.

Find out more about this fund inc. charges

Marlborough UK Micro-Cap Growth

Giles Hargreave is one of the most successful smaller companies fund managers in the UK. Time and time again he’s shown his ability to find small companies with growth potential. He invests in a large number of companies, which helps diversify the fund. His long-term performance, alongside co-manager Guy Feld, has been superb. That’s not a guide to future performance though.

The managers are backed up by one of the strongest teams in the sector. They help them sift through the hundreds of smaller companies in the UK to find the ones they think are primed for future growth.

Investing in smaller companies is riskier than investing in large ones though. Smaller companies have often done better over the long-term, but they’ve also had bigger drops along the way. That’s why investing in smaller companies is for more adventurous investors who don’t mind seeing larger ups and downs in performance.

Marlborough UK Micro-Cap Growth performance during Giles Hargreave's tenure

Past performance is not a guide to the future. Source: Lipper IM to 31 October 2018.

Annual percentage growth
Oct 13 -
Oct 14
Oct 14 -
Oct 15
Oct 15 -
Oct 16
Oct 16 -
Oct 17
Oct 17 -
Oct 18
Marlborough UK Micro-Cap Growth 6.5% 16.8% 7.0% 41.0% -2.5%
FTSE Small Cap ex Investment Trust -0.1% 13.1% 6.7% 21.9% -8.0%

Past performance is not a guide to the future. Source: Lipper IM to 31 October 2018.

Find out more about this fund inc. charges

Share via email Share on Facebook Share on Twitter Share on Google Plus Share on Linkedin
Investment notes
No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.
Share via email Share on Facebook Share on Twitter Share on Linkedin