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Fundsmith most popular with advisers, says AJ Bell

Fundsmith most popular with advisers, says AJ Bell

Terry Smith’s equity fund was the most popular among advisers in 2021, according to AJ Bell’s Investcentre platform.

Fundsmith Equity currently sits at £27.9bn and saw a return of 18.5 per cent in the year to November 31. The fund’s top ten holdings are Microsoft, INDEXX and L’Oreal, with 28.8 per cent in consumer staples, and 27 per cent in technology.

Last week, Nick Train, who co-manages the Lindsell Train funds alongside Michael Lindsell, acknowledged that the firm he co-founded could be facing its worst performance in 20 years.

Worst hit was the Lindsell Train Global Equity fund, which saw an annual return of 3 per cent compared to the 24.4 per cent return of its benchmark, the MSCI World Index.

Four Baillie Gifford funds were also among Investcentre's top 20 funds, as well as both of Lindsell Train’s equity funds.

Fidelity Asia was the second most popular fund on the platform, with the long-term favourite Scottish Mortgage Investment Trust at 8th place.

Laith Khalaf, head of investment analysis at AJ Bell, said despite 2021 being a difficult year, the markets have not been particularly tricky to read.

“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, he added, after a year in which Beijing’s crackdown on disorderly capitalism has taken some steam out of market performance in the far east.

“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.”

Top 20 most popular funds and trusts with advisers

Rank

Fund

1

Fundsmith Equity

2

Fidelity Asia

3

Lindsell Train UK Equity

4

Baillie Gifford American

5

Baillie Gifford Managed

6

Artemis Corporate Bond

7

Rathbone Ethical Bond

8

Scottish Mortgage IT

9

Janus Henderson Strategic Bond

10

Allianz Gilt Yield

11

Ninety One UK Alpha

12

Premier Portfolio US Opportunities

13

Baillie Gifford Japanese

14

Premier Portfolio European Opportunities

15

Lindsell Train Global Equity

16

RL Sustainable World

17

Stewart Investors Asia Pacific Leaders

18

TwentyFour Corporate Bond

19

Baillie Gifford European

20

Liontrust Special Situations

Source: AJ Bell Investcentre 01/01/21 - 30/11/21

sally.hickey@ft.com