Early Bird ISA Investors Snap up Equity Funds as Confidence Returns

• IA fund flow stats reveal investor confidence returned in March with £2bn inflows
• Green shoots continue with positive results from a number of UK firms
• Early bird ISA investors’ picks positive on global equities in the new tax year – though some caution remains with two money market funds in the most bought

Emma Wall, Head of Investment Analysis and Research at Hargreaves Lansdown  “Early bird ISA trading in the new tax year reveals investor confidence is tentatively returning – with risk-on global equities, commodities and renewables amongst the most bought funds and investment trusts. This echoes the fund flows figures from the Investment Association in March, showing a rebound to £2bn inflows for the month, after a torrid year of outflows across all sectors. The previous year, investors pulled £3.5bn out of funds in March as Russia invaded Ukraine and consumer confidence tanked. Despite the continued war, high inflation and economic uncertainty, there are some green shoots, with companies including HSBC, Shell and British Airways parent group IAG posting positive results last week, and UK services PMI beating market expectations. But not everyone is bullish on the market outlook. Alongside Asian, global and US equity buys, two money market funds make the top 10 most bought, showing clients are keen to keep their powder dry in anticipation of a further market fall.” Top Funds, 6-28 April (net buys, alphabetical):

• abrdn Sterling Money Market
• Fidelity Global Dividend
• Fidelity Index World
• Fundsmith Equity
• Jupiter Asian Income
• Legal & General European Index
• Legal & General International Index Trust
• Legal & General US Index
• Royal London Short Term Money Market
• Vanguard Life Strategy 100% Equity

Top Investment Trusts, 6-28 April (net buys, alphabetical):

• BlackRock World Mining Trust plc Ordinary 5p
• City of London Investment Trust Ordinary 25p Shares
• F&C Investment Trust plc Ordinary 25p
• Fidelity European Trust plc Ordinary 2.5p
• Greencoat UK Wind plc Ordinary 1p
• Henderson Far East Income Ltd Ordinary NPV
• JPMorgan Global Growth & Income plc Ordinary 5p
• Law Debenture Corporation plc Ordinary 5p
• Merchants Trust plc Ordinary 25p
• Murray International Trust plc Ordinary 25p shares