What's hot and what's not this ISA season
“The new VT Chelsea Managed funds are proving to be the hot favourites this ISA season,” comments Darius McDermott, managing director of Chelsea Financial Services.
“It's fantastic that so many of our clients are investing in the new funds. The range of four was launched in June last year as a natural extension to the other products and services we offer, and the fully-managed vehicles seem to be hitting just the right note – all four are in the top ten best-selling funds.”
Last year, Neil Woodford was the firm favourite with both his funds, LF Woodford Equity Income and LF Woodford Income Focus, in number one and number two spots. Four other UK equity funds also made the list, as investors favoured home soil.
This year, the UK seems to have lost some of its shine, with just two UK equity funds making it into the top ten. Indeed, according to the Bank of America Merrill Lynch Global Fund Manager Survey for March 2018, UK equities are bottom of the pile when it comes to asset class allocation versus historical norms.
Having reached a record high of 7,778 on 12 January, the FTSE 100 is down 10% at 7,024 today*. ISA investors are instead hedging their bets in multi-asset funds and, when it comes to equities, prefer global, Asian and European options.
Best selling funds for ISAs this year compared with last year**
| 2018 | Fund name | 2017 | Fund name |
| 1st | VT Chelsea Managed Balanced Growth | 1st | LF Woodford Income Focus |
| 2nd | VT Chelsea Managed Monthly Income | 2nd | LF Woodford Equity Income |
| 3rd | VT Chelsea Managed Aggressive Growth | 3rd | M&G Global Dividend |
| 4th | Fundsmith Equity | 4th | Fundsmith Equity |
| 5th | LF Woodford Equity Income | 5th | Stewart Investors Asia Pacific Leaders |
| 6th | Artemis Global Income | 6th | Liontrust Special Situations |
| 7th | Stewart Investors Asia Pacific Leaders | 7th | Invesco Perpetual Monthly Income Plus |
| 8th | Jupiter European | 8th | JOHCM UK Dynamic |
| 9th | VT Chelsea Managed Cautious Growth | 9th | AXA Framlington UK Select Opportunities |
| 10th | Liontrust Special Situations | 10th | Marlborough UK Micro Cap Growth |
Darius continues: “When it comes to Junior ISAs, the choices are similar this year but the level of risk – given the longer investment time horizon – is slightly higher.”
Best selling funds for Junior ISAs this year compared with last year**
| 2018 | Fund name | 2017 | Fund name |
| 1st | VT Chelsea Managed Aggressive Growth | 1st | Liontrust Special Situations |
| 2nd | VT Chelsea Managed Balanced Growth | 2nd | Fundsmith Equity |
| 3rd | Rathbone Global Opportunities | 3rd | M&G Global Dividend |
| 4th | Marlborough UK Micro Cap Growth | 4th | Schroder Asian Income |
| 5th | Fundsmith Equity | 5th | Rathbone Global Opportunities |
| 6th | M&G Global Dividend | 6th | Marlborough UK Micro Cap Growth |
| 7th | Liontrust Special Situations | 7th | LF Woodford Equity Income |
| 8th | AXA Framlington UK Select Opportunities | 8th | Matthews Asia Pacific Tiger |
| 9th | Lindsell Train Global Equity | 9th | LF Woodford Income Focus |
| 10th | Schroder Asian Income | 10th | Stewart Investors Asia Pacific Leaders |
*20 March 2018
**Source: Cofunds, Chelsea Financial Services client buying behaviour, 1 January to 31 March 2017 and 1 January to 20 March 2018