Where did our clients invest in April 2020?
Here are the top 10 funds our clients invested in across April 2020. We’ve counted down from 10 to one to see where our investors put their money in a time of unprecedented uncertainty.
Published on 06 May 20205 minute read
Scottish Mortgage Trust has made another appearance this month. Interestingly, investments in the portfolio are chosen on merit rather than by geographical allocation for example. The portfolio is fairly concentrated and aims for a higher return than the FTSE All World Index. Some companies include Netflix and Tesla.
‘Someone's sitting in the shade today because someone planted a tree a long time ago.’
Managers Nick Train and Michael Lindsell have a shared investment philosophy, influenced by Warren Buffett. They invest in companies they define as ‘exceptional’ – those that will be profitably in business in 20 years’ time. Most are found in the financials and beverages sectors
This is one of our very own Ready-made Portfolios. It invests in shares, bonds, property and some smaller companies overseas and high yield bonds. It could suit you investors with a good appetite for risk and who are ready to play the long game and invest for the long term.
The team behind this fund believe small companies are no longer just domestic – globalisation has meant they can now expand internationally. So, the fund targets those small cap companies that can grow into meaty large caps and provide above average total returns over the long term. It’s been a pretty strong contender since launch and features names such as Novocure and Ocado.
This fund is a low-cost way to invest in large-cap US equities, specifically those in the S&P 500 index. Similar to the HSBC FTSE 100 Index, this is a passive fund but active fund managers struggle to add value to the large cap end of the US equity market – so could you give this a chance instead?
Managers Cross and Fosh (rhyming not intended…) focus on companies with an ‘economic advantage’, which enables them to produce sustained profit growth. It’s this distinct approach that provides some diversification from more mainstream UK funds, and also gives the fund some resilience in weaker markets. An appealing characteristic, especially at the moment.
Another new face – and one for the technophiles. This fund has a concentrated portfolio with a global approach to technology investment across large, medium and smaller companies. Though the fund invests worldwide, the companies will be mainly in the US – similar to the location of much of the industry. The management duo is highly experienced in the field.
Some monster companies in the fund: Visa, Monster Beverages Corporation and Procter & Gamble.
The fund aims for long-term growth of capital. Fund manager, Aziz Hamzaogullari, has a concentrated portfolio of high-quality, high-growth stocks – mainly large US companies. Companies that pass their strict quality and growth requirements are added to their ‘bench’ of stocks to watch until the price is right – i.e. where valuation is compelling.
This fund has crept up from 5th place last month to silver this time. Managers Nick Train and Michael Lindsell take large positions in a small number of businesses, but the high quality and stability of these businesses (such as Unilever, Diageo and Disney) mean that it doesn’t necessarily increase investment risk and has actually offered some protection in falling markets.
Fundsmith Equity has been in top place every month this year month showing it’s ripe for the picking in both extreme climates and ‘normal’ ones. Fund manager Terry Smith has pretty strong views on the fund management industry, but his approach has beaten the market over time. A compelling feature too (particularly at the moment) is that it also provides low volatility returns and a degree of protection in falling markets.
How are you doing?
There’s a lot going on at the moment, and you might have other priorities on your mind. But if you’re feeling nervous about your investments, or feel like you have more time on your hands to finally get on top of them, we’re still here. Business as (un)usual. Stay safe!
How to invest in these funds
All of these funds (plus thousands more) can be bought in our award-winning Best SIPP and Stocks & Shares ISA or in an investment account. These offer great value for money and give you control over your investments. It’s quick and easy to open an account with us – take a look below. Please read the important information below and make sure you understand the risks before investing.
Speak to us
For more information on the Best SIPP, our Stocks & Shares ISA, investment account or any of these funds, please get in touch by calling us on 020 7189 9999 or emailing us at email@example.com.
The value of your investment can go down as well as up, and you can get back less than you originally invested. Past performance is not a guide to future performance.
Before investing in funds please check the specific risk factors in the Key Features Document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest.
This article does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact a financial adviser. It is based on our opinions which may change
SIPPs are not suitable for everyone. They may not be right for you if you don’t want to invest across different asset classes or don’t think you will make use of the investment choices available to you. Please contact us for guidance or advice if you are unsure.
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