close
close
bsxonair

Fidelity Investors Move Away From Tech Funds In August, Seeking Stability Amid Market Volatility – Fidelity International

Gillberg
Fidelity Investors Move Away From Tech Funds In August, Seeking Stability Amid Market Volatility – Fidelity International

  • Fidelity Personal Investors has moved away from technology-focused funds
  • Amid market volatility, August saw a significant shift towards diversification and defensive assets
  • Global growth opportunities have remained very attractive to investors, as seen in the popularity of funds and investment trusts that offer international exposure.

August was a rollercoaster month for investors, with global stock markets experiencing significant volatility. Many market indices posted sharp declines in early August, triggered by fears that the US was heading for a recession. But in the end it ended as quickly as it had begun, with markets around the world regaining much of the ground they had lost.

The last couple of months have been turbulent for AI shares, and one factor contributing to the market turmoil has been the spin-off in highly valued Magnificent Seven shares amid concerns about the sustainability of AI’s evolution. indeed Fidelity International (“Fidelity”) ISA and SIPP investors are broadening their horizons beyond the sector, with a notable recovery in Fidelity Personal Investing’s best-selling funds in August.

Technology-focused funds have been front and center for Fidelity ISA and SIPP investors for much of the year, with Legal and General Global Technology Index Trust a consistent top 10 best-seller. However, August presented a different picture as investor enthusiasm cooled considerably with a move towards more diversified and defensive assets.

Best selling funds on Fidelity Personal Investing in August 2024

Source: Fidelity International. ISA and SIPP net sales in August 2024

Tom Stevenson, Chief Investment Officer, Fidelity International, comments: “The technology sector has had a stellar performance, but the last month has been difficult. Nvidia has become the biggest influence on the stock market this year, with a high correlation between its share price movements and those of the wider market, and the value of the company – briefly the world’s largest – has fallen by around 750 billion dollars in July and August before regaining the entire market cap lost in a few trading days.

“We are witnessing a classic shift to safety as investors seeking stability have sought to preserve capital amid market volatility. In this change, money market funds have become very attractive again – offering liquidity and security, funds such as Royal London Short Term Money Market Fund and Fidelity Cash Fund continues to be popular with Fidelity ISA and SIPP investors.

“In addition to the pullback from technology, August saw an increase in interest in funds focused on global diversification and emerging markets. A new entrant into the top ten for ISA investors is HSBC FTSE All Share World Index Fundindicating that investors are seeking broader exposure amid global economic uncertainties. In particular, emerging market funds such as Fidelity China Focus Fund and Jupiter India Fund it has also attracted significant interest, highlighting a strategic pivot to regions with growth potential.”


Top selling stocks at Fidelity Personal Investing in August 2024

Source: Fidelity International. ISA and SIPP net sales in August 2024

Tom Stevenson continues: “In August, Fidelity investors demonstrated a shift in their investments, broadening their focus to include a diverse range of sectors such as consumer staples, technology and industrials. Despite an exit from technology funds in August, for ISA investors, they included notable stock picks AlphaWave IP Group which, despite the volatility seen in technology funds, was included in the top ten best sellers for ISA investors for the first time. With the continued demand for semiconductor technology, especially in AI and data centers, AlphaWave has emerged as a top choice.

“Riding the wave of a cruise tourism boom is Carnival which appeared in the top ten best sellers for ISA investors in August. Shares have made significant gains in recent months, supported by strong bookings momentum for 2025. Used car dealer, Motorpoint Groupappeared in the best-seller list for the first time and, despite falling earnings and widening pre-tax losses, ISA investors see it as a compelling choice, reflecting the strong performance of the used car market.

“For SIPP investors, housebuilder Crest Nicholson emerged as a new entrant following the rejection of a takeover bid by its competitor, Bellway.”

Best selling investment trusts on Fidelity Personal Investing in August 2024

Source: Fidelity International. ISA and SIPP net sales in August 2024

Tom Stevenson continues: “Despite a move away from technology funds, Fidelity ISA and SIPP investors continue to see technology-focused investment trusts as attractive. The Polar Capital Technology Trust continued to attract significant inflows, securing its position as one of the top options for the second consecutive month. In addition, Allianz Technology Trust maintained a strong presence in the SIPP investor rankings.

“Beyond technology, global growth remained a key theme for Fidelity investors in August. The JP Morgan Global Growth & Income Trust has seen substantial interest, particularly among ISA investors, as it offers a diversified approach to investing in high-quality companies around the world. SIPP investors have also shown a growing appetite for trusts with a focus on diversification and defensive strategies. The F&C Investment Trustone of the oldest investment trusts, continued to attract inflows.”

Related Posts