Laith Khalaf, head of investment analysis at AJ Bell, looks at some of the most popular funds chosen by advisers on the AJ Bell Investcentre platform in 2021:
“2021 has been a testing year in all sorts of ways, but the markets have been particularly difficult to read, especially in the bond space where the will-they-won’t-they dance of central banks over interest rate rises has led to volatility, and concern over the future returns on offer. Advisers continued to put money into bond funds, as part of a diversified approach to portfolio management in a highly uncertain world, but also chose to allocate money to Asia Pacific funds, which demonstrates some appetite for risk too. It also represents a contrarian stance after a year in which Beijing’s crackdown on disorderly capitalism has taken some steam out of market performance in the far east.
“Fundsmith Equity retains the crown of most popular fund with advisers, which shows the successful long term buy and hold investment strategy is not just a hit with DIY investors. Baillie Gifford offerings also proved popular, with the investment house bagging five of the top twenty most popular fund spots. Advisers are also sticking with Lindsell Train despite poor performance this year, clearly keeping an eye on the long term and the returns delivered by the Lindsell Train management duo in the past.
“2022 promises to bring its own challenges, as it looks like we’ll be entering the year with the pandemic once again front and centre of proceedings. Inflationary concerns and the effect of rising interest rates will also likely factor into the market melting pot for the year, and the backdrop of extremely high equity valuations in the US will also give investors pause for thought.”
20 most popular funds and trusts with advisers on the AJ Bell Investcentre platform in 2021
| Investment |
| Fundsmith Equity |
| Fidelity Asia |
| Lindsell Train UK Equity |
| Baillie Gifford American |
| Baillie Gifford Managed |
| Artemis Corporate Bond |
| Rathbone Ethical Bond |
| Scottish Mortgage IT |
| Janus Henderson Strategic Bond |
| Allianz Gilt Yield |
| Ninety One UK Alpha |
| Premier Portfolio US Opportunities |
| Baillie Gifford Japanese |
| Premier Portfolio European Opportunities |
| Lindsell Train Global Equity |
| RL Sustainable World |
| Stewart Investors Asia Pacific Leaders |
| TwentyFour Corporate Bond |
| Baillie Gifford European |
| Liontrust Special Situations |
| Source: AJ Bell Investcentre 01/01/21 – 30/11/21 |
