SIPP investors’ appetite for risk remained strong in June, according to data from Hargreaves Lansdown, which showed that global equity funds dominated the top ten funds bought in SIPPs on its platform.
Fundsmith Equity topped the list of funds chosen by SIPP investors last month, followed by Legal & General US Index, Legal & General International Index Trust, Rathbone Global Opportunities and Lindsell Train Global Equity.
Victoria Hasler, head of fund research at Hargreaves Lansdown said the findings were not surprising “given the long-time horizons” of most SIPP investors.
She said: “Global equity funds were a popular choice, with six of the top ten funds for SIPP investors focusing on global equity. US and technology also remained popular, while Jupiter India, a fund which has had an incredible run of performance rising 23.05% over the year to date, slipped to eighth place on the list.”
Meanwhile, among SIPP drawdown clients, the leading funds in June were Legal & General Global Technology Index Trust, Fidelity Index World, Artemis High Income and Legal & General Global 100 Index. While global equity funds remained popular, the findings also showed a preference for income, with several income-focused funds featuring on the list.
Within junior SIPP accounts, where the timeframe for investment is longer, investors had a higher tolerance for risk, said Hargreaves Lansdown. The top fund for JSIPP in June was Legal & General International Index Trust followed by Lindsell Train Global Equity and Vanguard LifeStrategy 100% Equity.
Hasler said: “Within Junior SIPP accounts, while global equity funds still dominated, there was also an emerging market fund featured at number nine on the list. This makes a lot of sense as these economies have huge potential for growth over very long timeframes, although they can be quite volatile over shorter periods.
“Interestingly, an ESG-focused fund made its way into the list at number ten. Again, this seems a sensible choice as parents and grandparents investing in Junior SIPPs for the younger members of their family often prefer to invest in such a way as to leave a better world for their descendants.”
