February's 10 most-bought funds
CF Woodford Equity Income, run by ex-Invesco Perpetual star manager Neil Woodford, was the most-bought fund on Moneywise's sister website Interactive Investor in February, marking seven months in the top spot.
The fund has been Interactive's best seller since its launch in June 2014 since when it has raked in close to £3.5 billion from investors, bringing its total assets under management up to over £5 billion as at 16 March.
In the six months to 16 March CF Woodford Equity Income has returned 10.2%, making it the fourth best-performing fund in the 90 fund-strong Investment Association's (IA's) UK equity income sector. The best performer in the sector is Majedie UK Income, which has returned 13.9% over the same period.
The second best-selling fund on Interactive Investor in February was Axa Framlington Biotech, which holds on to its spot for the third consecutive month.
Managed by biotechnology expert Linden Thomson, the fund has returned an impressive 51% in the year to 16 March and 206% over three years as the biotechnology sector has boomed.
First State Asia Pacific Leaders climbed one place from fourth most-bought fund in January to third in February as Asian markets continue to deliver respectable returns.
Over the past six months to 16 March the MSCI Asia Pacific ex Japan index has returned close to 5% compared to less than 2% from the UK's FTSE All Share.
First State Asia Pacific Leaders has, however, delivered significantly more than the market with a return of 10.4% over six months and 30.7% over one year to 16 March.
Fundsmith Equity dropped one place to be the fourth most-bought fund in February. Launched by Terry Smith in 2011, the global fund has delivered top-quartile returns over six months, one year and three years, however has struggled a little in recent months.
Artemis Global Income held on to its place as the second most-bought fund for the second month in a row as manager Jacob de Tusch-Lec continues to deliver strong returns.
Launched in 2010, Artemis Global Income has delivered 69% in the three years to 16 March, making it the best performer in the IA's global equity income sector while paying an attractive 3.3% dividend yield.
Woodford's former charge Invesco Perpetual High Income was the sixth most-bought fund in February for the third consecutive month, as new manager Mark Barnett successfully steers through the huge outflows created by Woodford's departure last spring.
Three tracker funds took the seventh, eighth and ninth most-bought spots in February: Vanguard LifeStrategy 80% Equities, Vanguard FTSE Developed World ex UK Equity Index and HSBC FTSE 250 Index.
This was an increase from only one tracker fund in January, with Vanguard FTSE Developed World ex UK Equity Index making its debut in Interactive Investor's list.
Finally, Neptune UK Mid-Cap made a long awaited reappearance in the list, coming in as the 10th most-bought fund in February after more than two years of not featuring.
Managed by medium size company expert Mark Martin, Neptune UK Mid Cap is one of Neptune's few successful funds compared with peers. Over both five and three years to 16 March it is the best-performing fund in the 270-strong UK all companies sector, delivering 160.5% and 81.5% during the respective time periods.
As part of a recent re-shuffle, Neptune has also appointed Martin manager of Neptune UK Opportunities, which is one of the worst-performing funds in the UK all companies sector over one year to 16 March with a return of 2.4% compared to an average of 4.5% from the sector.
This article was written for our sister website Money Observer
The general term for the rate of income from an investment expressed as an annual percentage and based on its current market value. For example, if a corporate bond or gilt originally sold at £100 par value with a coupon of 10% is bought for £100 then the coupon and the yield are the same at 10%, or £10. But if an investor buys the bond for £125, its coupon is still 10% (or £10) and the investor receives £10 but as the investor bought the bond for £125 (not £100) the yield on the investment is 8%.
Also known as index funds, tracker funds replicate the performance of a stockmarket index (such as the FTSE All Share Index) so they go up when the index goes up and down when it goes down. They can never return more than the index they track, but nor will they lose more than the index. Also, with no fund manager or expansive research and analysis to pay, tracker funds benefit from having lower charges than actively managed funds, with no initial charge and an annual charge of 0.5%.
An interchangeable term for shares (UK) or stocks (US). Holders of equity shares in a company are entitled to the earnings and assets of a company after all the prior charges and demands on the company’s capital (chiefly its debts and liabilities) have been settled. To have equity in any asset is to own a piece of it, so holders of shares in a company effectively own a piece proportionate to the number of shares they hold. (See also Shares).
If you own shares in a company, you’re entitled to a slice of the profits and these are paid as dividends on top of any capital growth in the shares’ value. The amount of the dividend is down to the board of directors (who can decide not to pay a dividend and reinvest any profits in the company) and they will be paid twice yearly (announced at the AGM and six months later as an interim). Dividends are always declared as a sum of money rather than a percentage of the share’s price. Although dividends automatically receive a 10% tax credit from HM Revenue & Customs (HMRC), which takes the company having already paid corporation tax on its profits into account. Dividends are classed as income and, as such, are liable for personal taxation and so shareholders have to declare them to HMRC.