Which Elite Rated funds have trebled your children’s savings?

Darius McDermott 31/10/2023 in Best performing funds

Junior ISAs were introduced back in November 2011 as long-term, tax-free savings vehicles for children under the age of 18. The current annual maximum that can be invested into a Junior ISA during a tax year is £9,000*. This tax year runs from 6th April to the following 5th April.

There are no limits as to how this money can be invested. You can contribute an annual lump sum, make regular monthly deposits, or opt for ad hoc payments. However, the total saved/invested must not exceed the £9,000 limit. Therefore, if £3,000 has been paid into a cash Junior ISA, only a maximum of £6,000 can be put into a stocks and shares Junior ISA in the same tax year.

How have Elite Rated funds rewarded Junior ISA investors?

The data shows Junior ISA investors who accessed higher-risk asset classes will have generated impressive returns from themes such as technology and innovative healthcare that typically require longer-term investment horizons.

Of the 232 Elite funds and trusts currently Rated by FundCalibre, 145 have track records that extend to the launch of the Junior ISA in November 2011. All of these funds have produced a positive return in this period with 78% boosting more than 100% returns during the period and a quarter of funds returning move than 250%**. 

Top 20 performing Elite Rated funds and trusts over 12 year

The top-performing Elite Rated fund since the launch of Junior ISAs is Fidelity Global Technology, which has delivered an astounding growth rate of 808.6%** since November 2011.

In second spot is AXA Framlington Global Technology, another fund that has seen outsized performance, returning 555.27%** over the same period. Its focus on global technology investments underscores the importance of a long-term perspective when participating in the digital revolution.

Also in the top ten performers is AXA Framlington Biotech, which posted stellar returns, with a 466.7%** return on capital invested. Darius McDermott, managing director of FundCalibre, says this emphasises the need for patience when investing in more volatile specialist areas such as biotechnology. “Ground-breaking discoveries and treatments may take years to reach the market, and long-term investors are well-positioned to reap the benefits,” he said.

Meanwhile, the Guinness Global Innovators fund’s growth rate of 453%** over the period underscores the long-term potential of tapping into innovative industries. The managers of this fund have identified nine core innovation themes through their research. These themes range from advanced healthcare to artificial intelligence to big data.

“Innovation is a multi-year investment journey, and patient investors can harness its growth. The data shows that Junior ISAs are not just a practical way for parents to secure their child’s financial future; they are also an ideal vehicle for capturing investment themes that take years to mature. This can be five or ten years or even the full 18-year investing period of the Junior ISA,” Darius added.

RankFund/TrustPercentage returns since JISA launch**
1Fidelity Global Technology808.6%
2AXA Framlington Global Technology555.3%
3Polar Capital Healthcare Opportunities473%
4Scottish Mortgage Investment Trust469.8%
5AXA Framlington Biotech466.7%
6Fundsmith Equity463.8%
7AXA Framlington American Growth456.8%
8Guinness Global Innovators453%
9Baillie Gifford American426.9%
10Polar Capital Global Insurance411.2%
11GAM Star Disruptive Growth403.9%
12Stewart Investors Indian Subcontinent Sustainability 378.2%
13Goldman Sachs India Equity Portfolio369.6%
14JPM US Equity Income329.9%
15BlackRock European Dynamic323%
16FTF Martin Currie US Unconstrained312.5%
17Rathbone Global Opportunities311.9%
18IFSL Marlborough European Special Situations310.7%
19CT Global Extended Alpha310.2%
20Fidelity Global Special Situations309.2%

The importance of a truly global portfolio

But it is not just specialist funds that have performed since Junior ISAs were launched. More generalist funds have seen impressive returns, too. The Rathbone Global Opportunities fund is a global growth strategy looking to buy innovative companies that have flown under the radar of the main market. It aims to identify global themes and invest in them early. This fund returned 311.9%** over the timeframe.

Meanwhile, Goldman Sachs India Equity Portfolio, BlackRock European Dynamic, and JPM US Equity Income also appeared in the top twenty performers**, highlighting the importance of geographical allocations and portfolio diversification.

*Source: Gov.uk, October 2023

**Source: FE Analytics, total return in sterling, 1 November 2011 to 22 October 2023


Photo by Ben Wicks on Unsplash

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions.Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice.Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.