Liontrust tops list of bestselling Junior Isa funds

UK-Currency-Money-Coin-Pounds-GBP-700x450The £2.1bn Liontrust Special Situations fund has topped Chelsea Financial Services’ list of the 10 best-selling funds for Junior Isas, despite not being the best performing fund in the group.

The Liontrust fund, co-managed by Anthony Cross and Julian Fosh, returned 107.7 per cent since 1 November 2011, when Junior Isas were launched, beating the FTSE All Share by more than 45 per cent, according to FE.

However, the £1.1bn Marlborough Special Situations fund, which ranked ninth in Chelsea Financial Services’ best-selling list, returned 121.5 per cent against the 101 per cent of the FTSE Small Cap index for the same period.

Chelsea Financial Services managing director Darius McDermott says: “Junior ISAs have really taken off in the past three years, since the government made it possible for people to transfer out of the Child Trust Fund.”

CTF has been stopped in 2011 and have been replaced by Junior Isas.

Source: Chelsea Financial Services, FE

A total of £2.6bn is currently invested under Junior Isa accounts, according to HRMC.

The average amount invested each year stands at £1,336, which is more than four times the amount held in the average Child Trust Fund.

McDermott says: “We’ve found that grandparents, especially, have been keen to start saving as soon as possible for grandchildren and, due to the long time scales, have been willing to take a bit more risk with the underlying investments, for the potential for greater rewards.

“Even just a small amount, invested early on, can make a huge difference and give children a much better financial start to adult life.”