What are the best ISA investment funds August 2020? | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 14/08/2020

At the start of August, investment in equities of companies involved in the mining and gold-related industries dominated the top-performing ISA investment unit trusts over the short-term (12 months), with only one of the top five investing in equities. Over the same period, the best-performing ISA investment trusts consisted of those investing in equities and securities, with the top two funds focussing on Asia-Pacific (excluding Japan). Investment focussed in European companies and assets only featured once in the short-term top five performing investment trusts.
The flight to funds focussing on investments in the mining and gold/precious metals industries started in April 2020 in response to the Covid-19 pandemic and has seen most funds grow up to 1 August 2020. However, prior to April 2020, those funds investing in gold listed in our current top five best unit trust performers over 12 months all had negative growth. Investors will need to keep an eye on whether returns from gold will reach a peak, as results published this week by Interactive Investor have seen the returns on these funds start to drop.
Funds investing in technology firms feature in the top five performers over five years across both types of investment fund.
We summarise below the top five performing ISA investment funds for a £1,000 investment over the past 12 months and five years.

Top ISA unit trust funds

Rank

Fund

Ranking last month

Value of £1,000 lump sum over one year

Value of £1,000 lump sum over five years

Investment platform

1

LF Ruffer Gold Account

1

£1604.50

£4409.95

Interactive Investor

Fidelity

2

Baillie Gifford American A Account

2

£1535.96

£3846.88

Interactive Investor

Fidelity

3

Ninety One Global Gold A Account GBP

3

£1454.86

£3946.22

Interactive Investor

 

4

Blackrock Gold & General A Inc

6

£1339.93

£2922.61

Interactive Investor

5

Smith & Williamson Global Gold & Reserve Account

5

£1319.38

£2572.16

Interactive Investor

Fidelity

Source: Lipper/Moneyfacts
Note: The table above is ordered by the best performance 1 August 2020 over the past 12 months. Funds may be available on other platforms not listed, through a stockbroking service or financial adviser.

The best-performing ISA Unit Trust Fund in August continued to be the LF Ruffer Gold Account. This account delivered a return of £604.50 on an investment of £1,000 in the past 12 months and has a 340% growth rate over the past five years. This account invests principally in gold and precious metals-related businesses and in the mining industry. This fund has a 1.24% fund management charge.
The next two best funds for returns in the short-term are the Baillie Gifford American A Account and the Ninety One Global Gold A Account GBP. Both funds were also in second and third place last month. The Baillie Gifford American A Account delivered a return of £535.96 and the Ninety One Global Gold A Account GBP £454.86 on a £1,000 investment over the past 12 months. The fund manager charges 0.51% for running the Baillie Gifford fund.
The Ninety One Global Gold A Account GBP is a smaller fund compared to the higher-placed Baillie Gifford and LF Ruffer funds and has a fund size of £376m. It aims to achieve growth through investing in companies involved in gold mining and its fund management fee is 0.84%.
The Blackrock Gold & General A Inc and Smith & Williamson Global Gold & Reserve Account delivered returns of £339.93 and £319.38 respectively on £1,000 over the last 12 months. Both invest in the gold and precious metals industry.
The unit trust funds delivering the best returns on a £1,000 investment over five years were:

  1. LF Ruffer Gold Account
  2. Ninety One Global Gold A Account GBP
  3. Baillie Gifford American A Account
  4. L&G Global Technology Index R Account
  5. AXA Framlington Global Technology.

Over five years, the nature of funds delivering the best returns is a more mixed picture, with these investing in gold, securities and technology companies.

Top investment trusts

Rank

Fund

Ranking last month

Value of £1,000 lump sum over one year

Value of £1,000 lump sum over five years

Investment platform

1

JP Morgan China

1

£1,663.47

£3,090.50

Interactive Investor

Fidelity

2

Pacific Horizon Investment Trust

5

£1,575.00

£2,785.58

Interactive Investor

Fidelity

 

3

Scottish Mortgage Investment

3

£1,551.51

£3,327.93

Interactive Investor

Fidelity

4

Biotech Growth Trust

2

£1,514.93

£1,456.07

Interactive Investor

Fidelity

5

Baillie Gifford European Growth Trust Plc

9

£1,380.91

£1,608.26

Interactive Investor

Fidelity

Source: Lipper/Moneyfacts
Note: The table above is ordered by the best performance 1 August 2020 over the past 12 months. Funds may be available on other platforms not listed, through a stockbroking service or financial adviser.

The top investment trust fund in August 2020 was JP Morgan China. This fund generated £663.47 on a £1,000 investment over the last 12 months and includes investments in companies listed on the Hong Kong stock exchange and unlisted companies in China. It also has a maximum of 15% of its assets in UK-listed companies. This fund has a management fee of 1.30%.

The rest of the top five investment trust funds have seen changes this month compared to July 2020, with the Pacific Horizon Investment Trust moving from fifth to second place. This fund generated £575 on a £1,000 investment over 12 months. This fund invests in Asia-Pacific (excluding Japan) and the Indian subcontinent. This fund has a management fee of 1.21%.

The Scottish Mortgage Investment remains at position three in the chart, earning £551.51 on a £1,000 investment over the last 12 months. This investment trust holds the majority (70%) of its funds in companies listed on a public market. It has no limits on the geographical location, industry type or sectors that it chooses to invest in. Its management fee is 0.77%.

The Biotech Growth Trust has reduced in value this month, from the second-best performing investment trust fund ISA to position four on the table, generating £514.93 on a £1,000 investment over 12 months compared to £632.55 last month. This fund invests across the world in shares and related securities of biotechnology companies. It has a management fee of 1.24%.

The Baillie Gifford European Growth Trust Plc has seen an increase in value – on 1 July, a £1,000 investment over 12 months in this trust generated £306.60, but by August, this has increased to £1,380.91. This fund reached a share price low of 620p on 19 March 2020 and has since recovered and exceeded pre-Covid 19 values. The management fee for this fund is 0.61%.

The investment trust funds delivering the best returns on a £1,000 investment over five years were:

  1. Allianz Technology Trust Plc
  2. Scottish Mortgage Investment
  3. Polar Capital Investment Trust
  4. JP Morgan China
  5. Manchester and London Investment Trust.

The picture for the best performers over five years is different, with only two (Scottish Mortgage Investment and JP Morgan China) of the best 12-month funds in the top five. The remaining funds focus on equities, with Manchester and London Investment Trust investing in the UK and globally, and JP Morgan in Hong Kong and China. Allianz Technology Trust Plc and Polar Capital Investment Trust both invest in companies in the technology sectors.

 

How to open a stocks and shares ISA

Savers can also invest in stocks and shares ISAs either by using an investment platform, such as Interactive Investor or with an ISA provider that manages the funds on their behalf. Investment platforms do offer more funds for investors to choose from, but carry the risk and time required for investors to manage their own portfolio. ISA providers such as BMO or Moneyfarm offer managed stocks and shares ISAs where their fund managers make decisions about the investments in the fund.

The value of investments can go up as well as down, and investors’ capital is at risk. Management fees have been included in this article, but other fees may apply. Investors should check all fees with their financial adviser, investment platform or provider before making any investment.

Find out the best performing investment ISA funds in October 2020

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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