Once again, among the top selling funds are four Invesco Perpetual offerings, M&G Corporate Bond and M&G Optimal Income. Artemis Income, Jupiter Corporate Bond and Jupiter Income also feature, beside BlackRock Gold & General.
New Isa sales on the platform totalled £412m over the 2008-09 tax year, a slight decline from the previous year’s £430m. However, over the Isa season from January to April, sales were up 8% on the same period last year.
Ben Yearsley, the senior investment manager at Hargreaves, says the ongoing popularity of income and bond funds is not surprising. “It is all about income at the moment,” he says.
“With cash yielding nothing, investors have to seek income elsewhere. Equity income funds are yielding up to 5% and bonds funds between 5% and 10% depending on the risk you are prepared to take. Getting paid 5% to hold equities is a reasonable return.”
The top performing fund over the year was Baring Korea, returning 25.02%. Several other Specialist sector funds made the top 10, including Junior Oils, up 24.84%, Oceanic Australian Natural Resources, up 22.29%, and Neptune Russia & Greater Russia, up 20.18%. European offerings from Credit Suisse and JPMorgan, a Hexam emerging markets fund and SVM UK Opportunities also featured.