9 November 2018 - Last week, Junior ISAs turned seven – marking a significant milestone for this tax-efficient savings wrapper for children.
According to the latest statistics from HMRC, more than £4.3 billion* has been saved or invested into Junior ISAs on behalf of 3.74 million* children since their launch in 2011.
Year in, year out general ISA statistics show a bias towards cash ISAs over stocks and shares ISAs amongst savers, in spite of the paltry interest rates on offer. However, when it comes to Junior ISAs – the numbers tell a different story: the average amount subscribed to a cash Junior ISA in the last tax year (2017-2018) was £813*, while the equivalent investment Junior ISA received £1,421*.
Over the past seven years this tax-efficient wrapper has proven its worth for parents and children alike across the UK. Below is a table of the best performing funds from our Chelsea Selection list over the period.
Legg Mason IF Japan Equity tops the table with a 360.52%** return. It is an out and out growth fund that is at the higher end of the risk spectrum, typically favouring mid and small-caps. While it has delivered exceptional performance, it is known to experience extreme volatility and significant falls when its growth style is out of favour. This strategy is not for the faint-hearted.
Meanwhile, Polar Capital Healthcare Opportunities claimed second spot with a 336.26%** return. This fund benefits from an experienced investment team, which seeks out reasonably priced healthcare stocks with strong growth prospects. Managers Daniel Mahony and Gareth Powell have delivered stellar returns over the past seven years.
It's interesting to note that our table of star performers is dominated by UK small cap funds. For example, Livingbridge UK Micro Cap, AXA Framlington UK Smaller Companies, Marlborough UK Micro Cap Growth and Amati UK Smaller Companies all appear in the top 20.
Meanwhile, a handful of growth and value managers performed well during the seven-year period. The top 20 funds include Baillie Gifford Global Discovery, AXA Framlington Global Technology and T. Rowe Price Global Focused Growth Equity from the growth camp. And on the value side, Fidelity American Special Situations and Fidelity Global Special Situations made an appearance.
|Position||Chelsea Selection fund name||Percentage returns|
Legg Mason IF Japan Equity
Polar Capital Healthcare Opportunities
Baillie Gifford Global Discovery
R&M UK Equity Smaller Companies
AXA Framlington Global Technology
LF Livingbridge UK Micro Cap
Dodge & Cox US Stock
Fidelity American Special Situations
AXA Framlington UK Smaller Companies
Marlborough UK Micro Cap Growth
Barings Europe Select Trust
TB Amati UK Smaller Companies
Marlborough Special Situations
AXA Framlington American Growth
T. Rowe Price Global Focused Growth Equity
Baillie Gifford Japanese
Fidelity Global Special Situations
LF Lindsell Train UK Equity