Global funds dominate best-sellers list

Investors are increasingly looking to global funds for income as well as growth, according to August’s top-sellers list from The Share Centre.

Jupiter Global Managed and Fundsmith Equity, both global growth funds, saw large inflows, while Newton Asian Income attracted more funds than FE Alpha Manager Neil Woodford’s two UK-focused Invesco Perpetual giants.

Invesco Perpetual High Income and Income continue to see strong inflows, however, despite already holding more than £20bn in assets under management between them. 

Andy Parsons, head of investment research at The Share Centre, said: "Historically, the Asian region was predominantly seen as one offering the potential for growth for investors; however, over the past several years there has been a growing focus on the income opportunities available from the region." 

He added: "The top-10 for the month of August clearly demonstrates investor appetite for income is in no way diminishing, with a number of regular stalwarts retaining their place alongside one or two that are gaining traction as investor appetite expands." 

Top-10 best-selling funds in August

Rank	Fund
1	Legal & General UK Index
2	Newton Asian Income
3	Jupiter Global Managed
4	Fundsmith Equity
5	Invesco Perpetual Monthly Income Plus
6	M&G Strategic Corporate Bond
7	Fidelity Enhanced Income
8	Invesco Perpetual High Income
9	Invesco Perpetual Income
10	First State Global Emerging Market Leaders

 
Source: The Share Centre

It should be noted that the top-selling fund, Legal & General UK Index, is the default selection for clients investing child trust fund vouchers.

Second-placed Newton Asian Income, run by Jason Pidcock and Caroline Keen, is a top-quartile performer over three and five years, in which time it has made 78.9 per cent, almost three times the sector average. 

According to data from FE Analytics it is currently yielding 4.44 per cent and it has £2.35bn in AUM. 

Fundsmith Equity was launched in November 2010, meaning it does not have the three-year track record demanded by most IFAs before they recommend a fund. 

Data from FE Analytics shows it has more than doubled the returns of its MSCI World benchmark in that time, delivering 26.66 per cent, and has significantly outperformed the sector average. 

"The fund adopts a long-term investment principle with the portfolio holding between 20 to 30 global stocks," Parsons commented. 

The fund has 47 per cent in consumer staples and 56 per cent exposure to the US, according to data from FE Analytics.

First State Global Emerging Market Leaders also appears in the top-10. Jonathan Asante was joined by FE Alpha Manager Glen Finegan in January, and the fund is a top-performer in the IMA Global Emerging Markets sector over one, three and five years. 

Over the longer timeframe it has made 81.05 per cent while the sector is up just 22.08 per cent.

Parsons said: "The fund’s appearance clearly shows that some investors still recognise that over the next decade or so, the continual rise and prominence of countries within this arena will only increase and change the way the global economies are viewed." 

There are four UK-focused income funds in the top-10, the highest of which is Invesco Perpetual Monthly Income Plus. 

Managed by FE Alpha Managers Paul Causer and Neil Woodford, along with Paul Read, this Strategic Bond portfolio is a regular top-quartile performer, with a yield of 6.59 per cent.