Vanguard tops Alliance Trust Savings most popular funds
Alliance Trust Savings has published the 20 most popular funds purchased in its Stocks and Shares ISA and Investment Dealing Accounts in the first half of 2011.
The Alliance Trust Savings i.nvest platform offers over 1,400 funds, the majority of which have no initial charge and any fund commissions received from fund providers are rebated in full back to the customer's account.
The top 20 list of most popular funds illustrates the diversity of funds available through the i.nvest platform with results clearly showing the popularity of funds with low Annual Management Charges (AMCs). In particular, Vanguard funds with AMCs as low as 0.15% are very popular, occupying four of the top six positions on the funds list.
Alliance Trust Savings is one of the few platform providers to offer the Vanguard funds as many investors seek out passively managed funds to ensure fees and charges do not eat into their returns. Vanguard's recently launched LifeStrategy funds have also been added to the platform. The i.nvest platform can offer the Vanguard funds as, unlike other platforms, it is not dependent on receiving commission from the fund provider.
AEGON Asset Management's UK High Yield Bond was the third most popular choice in the first half of 2011. The fund proved very popular with customers due to its competitively low AMC within its peer group and impressive fund performance of more than 40% growth over a 5 year period (source - Trustnet). Alliance Trust Asset Management's Monthly Income Bond was fourth most popular which is impressive given the fund has just celebrated its first birthday.
Garry Mcluckie, Head of Sharedealing at Alliance Trust Savings commented: "The i.nvest platform offers an extensive range of funds, with the majority having no initial charges and all fund commissions rebated back to a customer's account. This makes i.nvest one of the most cost effective ways of purchasing some of the leading funds in the UK.
"Customers can hold funds in our Investment Dealing Account, or alternatively in a tax wrapper, such as our Stocks and Shares ISA, making the value of rebates even more important."
Peter Robertson, Head of Retail at Vanguard Investments UK, Limited commented: "Vanguard's funds have appeared on the Alliance Trust Savings platform since our launch two years ago. The low total expense ratios (TERs) on Vanguard funds combined with Alliance Trust Savings competitive dealing charges has been a very successful means for self directed investors to minimise charges and thereby maximise returns. That's particularly valuable in a market where value for money can be challenging.
"When the low minimum purchase levels that the i.nvest platform offers are also factored in, Vanguard and Alliance Trust Savings combined has become a compelling proposition for anyone seeking to minimise costs, regardless of the size of their portfolio."