With another year almost over, we look at the funds that have been most popular with personal investors in 2019.
Top traded funds of 2019
• 2019 saw investors navigating a host of headwinds including trade tensions, tightening monetary policy, Brexit and inflation expectations.
• Established managers with broad appeal and proven track records continued to do well in 2019 but Woodford turned out to be ‘a fly in the ointment’.
• Our top traded funds for 2019 are the epitome of the year’s market activity and narrative.
Despite personal investors having to navigate a number of headwinds, 2019 was relatively peaceful according to the VIX index and this year’s top traded funds epitomise the year’s market activity and narrative.
Firstly, established managers with a broad appeal and proven track records continued to do well, however Woodford turned out to be a bit of a fly in the ointment. To the extent questions were raised about the performance of other so called ‘star managers’ such as Fundsmith and Lindsell Train.
In Q3 (latest data available from the IA) UK asset managers saw £15 billion of outflows since the Brexit vote, which continues to be reflected in our top 10 traded fund sales list, with the likes of Woodford, Aberdeen UK All Share Tracker and L&G Index Tracker all seeing outflows.
Secondly, back in 2017 many highlighted the heady valuations of technology companies, FAANGs in particular, yet they still capture the imagination of investors and today remain one of the best performing sectors in 2019. For example, AXA Framlington Global Technology experienced solid inflow and outflows over the year.
At the same time, as Environmental, Social and Governance (ESG), Sustainability and Extinction Rebellion movement grabbing the headlines it’s not surprising to see the Rathbones Ethical Bond Fund in the mix, given the manager’s proven track record in this space.
Finally, four index trackers have also made it into our top traded this year, which is not something I have noticed before. Given the dispersion of the trackers across the top bought and top sold though it hard to hypothesise if their inclusion is a consequence of market events. We will keep a watching brief on this as we go into the New Year to see if personal investors continue to lean towards these investment vehicles.
Find out what the top traded equities of 2019 were here
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