Targeting the Top Junior ISA Funds

Chelsea Financial Services outlines the funds that are being snapped up for Junior ISAs during the 2012-2013 year

Chelsea Financial Services 14 March, 2013 | 7:00AM
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This article is part of the special series, Investing with ISAs.

Morningstar's 'Perspectives' series features guest contributions from third parties such as asset managers, academics and investment professionals. The below article was written by Darius McDermott, the managing director at Chelsea Financial Services.

This year, parents and grandparents are favouring overseas equities for Junior ISA investments, with more than 50% of investments going into the following categories: global, Asia ex-Japan and global emerging markets.

The best selling fund for children's investments so far is the Newton Asian Income Fund, followed by the Invesco Perpetual High Income fund and the Liontrust Special Situations fund.

Top 10 Best-Selling Funds for JISAs

Rank

Fund

Morningstar Analyst Rating

Fund Manager

1

Newton Asian Income

Silver

Jason Pidcock & Caroline Keen

2

Invesco Perpetual High Income

Gold

Neil Woodford

3

Liontrust Special Situations

Bronze

Anthony Cross & Julian Fosh

4

M&G Global Dividend

Silver

Stuart Rhodes

5

Rathbone Global Opportunities

Silver

James Thomson

6

Marlborough Special Situations

Not rated

Giles Hargreave

7

M&G Global Emerging Markets

Under Review

Matthew Vaight

8

First State Global Emerging Markets Leaders

Gold

Jonathan Asante & Glen Finegan

9

Old Mutual Corporate Bond

Neutral

Christine Johnson

10

Schroder Asian Income Maximiser

Not rated

Thomas See & Richard Sennitt

The majority of Junior ISAs are still being set up on behalf of older children (73%) rather than newborn children, but the overall take-up rate has increased significantly in recent months. Applications over the last six months have been more than double those received in the preceding year.

This article was written using fund and sales data that was collected on February 28, 2013, by Chelsea Financial Services.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

About Author

Chelsea Financial Services  is a firm of independent financial advisers and the first intermediary to discount initial charges on unit trusts and bonds, and later PEPs and ISAs.