Where did our clients invest last month?
December 2020 was an uncertain month that ended with many losing a ‘normal’ Christmas and the fear of a new year lockdown (which came to fruition). Did a rocky December affect where our clients put their money?
Published on 08 Jan 20216 minute read
Written by Lucy Cowley
The funds below have done well, but you should always keep in mind that investments go down as well as up and you may not get back the amount invested. Remember the golden rule: a fund’s past performance is not necessarily a guide to future performance.
10. Scottish Mortgage Investment Trust
Three of the companies in there could be very useful in a third national lockdown…
Manager: James Anderson
What’s in there? Spotify, Netflix, Amazon
About the fund: most of the fund will be held in quoted equities meaning they’re on the stock market. It aims to maximise total return from long-term investments and those investments are chosen on merit– an interesting and ‘fair’ way of looking at things.
9. Lindsell Train Global Equity
The portfolio mainly consists of larger companies and has historically carried an overweight to Japan.
Manager: Michael Lindsell / Nick Train
What’s in there? Disney, Kao
About the fund: the management pair invest worldwide, but focus on developed markets. They buy what they view as cash-generative business franchises (who doesn’t want that?) and hold them for the long term.
8. Baillie Gifford Pacific
Baillie Gifford’s first of many appearances this time (spoiler alert!!).
Manager: Joe Faraday / Roderick Snell
What’s in there? Samsung, Sea (an internet platform company, not the big blue thing)
About the fund: this fund targets long-term capital growth in the Far East, excluding Australasia and Japan. It is run by Baillie Gifford's Edinburgh-based emerging markets team. They target companies in growing industries and tend to favour financially stable businesses that have competitive advantages. Company valuations are also taken into consideration.
7. Tilney Maximum Growth Portfolio
This is actually our most adventurous portfolio – think of Ellen Ripley, the only one to survive the Alien attack.
Manager: Tilney
What’s in there? Asset allocation – 86% equity. Geographical – 54% UK. Capitalisation – 59% large.
About the fund: this chancy little chap may be for you if you have a very high tolerance for risk and are going to be investing for a long time. It’s designed to deliver high growth by investing in UK and global stock markets but also has substantial exposure to both smaller companies and markets outside the UK, including emerging markets and Asia. Stock markets can be particularly volatile in the short term and investments in smaller companies and overseas markets carry their own risks. Risky biscuits.
6. Baillie Gifford Positive Change
Ending the year by storming up the charts since its last appearance in 10th is a good way to go out. Some of our investors clearly wanted to make a positive change ready for the new year.
Manager: a team of four: Kate Fox, Lee Qian, Michelle O’Keeffe, Ed Whitten
What’s in there? Moderna, Kingspan Group
About the fund: this fund aims to do good with your money. The companies within it deliver growth in one of four areas: social inclusion and education; environment and resource needs; healthcare and quality of life; and the needs of the world’s poorest populations. What a champ.
5. Tilney Adventurous Portfolio
Adventurous – think Han Solo and Chewbacca.
Manager: Tilney
What’s in there? Asset allocation – 74% equity. Geographical – 54% UK. Capitalisation – 60% large caps.
About the fund: high tolerance for risk and investing for a long time? Look no further! This fund has a large exposure to shares, including smaller companies, emerging markets and Asia, meaning a higher chance of short-term volatility… Can you ride the waves?
4. Fundsmith Equity
Fundsmith has taken a bit of a tumble this time round – it’s a few places away from its beloved first!
Manager: Terry Smith
What’s in there? IDEXX Laboratories, PayPal
About the fund: Terry Smith invests in a concentrated portfolio of large, liquid stocks, then holds them for the long term – this is a buy-and-hold strategy. The investments are typically found in Europe, UK and North America and often in the consumer staples sector.
3. Baillie Gifford American
Second time in a row in third. Well done, BG.
Manager: Gary Robinson/Ian Tabberer
What’s in there? Netflix, Wayfair
About the fund: this funds tries to select large and medium-sized companies showing long-term growth potential and which have shares trading on reasonable valuations. It’s worth noting that group views and constraints may also affect the construction of the portfolio.
2. Tilney Growth Portfolio
Second is the new first (except it’s not, but we’re still happy).
Manager: Tilney
What’s in there? Asset allocation – 64% equity. Geographical – 53% UK. Capitalisation – 61% large caps.
About the fund: if you’re ready to play the long game, take on risk and want some diversification away from the stock market, this could be the one for you. Some of the investment features have exposure to smaller companies, emerging markets and Asia (open to risk). But the rest of the fund is spread across bonds and other areas (actually help reduce risk).
1. Baillie Gifford Global Discovery
Ending 2020/starting 2021 in style: Baillie Gifford’s New Year’s resolution must have been to get back to number one.
Manager: Douglas Brodie
What’s in there? Tesla, Lendingtree
About the fund: the team take an innovative approach to global small caps by targeting a very specific type of company: those capable of growing into large caps – ooh-er. The Baillie Gifford Global Discovery fund has performed strongly since launch, though it has been fairly volatile so hold onto your hats.
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. (Psst – see our full awards list here.) 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 best@bestinvest.co.uk.
Important information
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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