Where did our clients invest last month?
In the past month, we’ve seen the return to ‘normality’ reach its limit for the time being to avoid the infection rate creeping up. See how this has affected where our clients invested, with four new entrants in the top 10…
Published on 05 Aug 20205 minute read
Written by Lucy Cowley
In number 10 (not that Number 10), we’re starting out with a new arrival, which could be a good option if you want your money to do some good for others as well as you.
This fund invests in an actively managed portfolio of global high-quality growth companies, such as M3, Inc. and Kingspan Group. The companies deliver growth in one of four areas:
- Social inclusion and education
- Environment and resource needs
- Healthcare and quality of life
- Base of the pyramid (the needs of the world’s poorest populations)
Adventurous – think Sacagawea.
This fund has a large exposure to shares, including smaller companies, emerging markets and Asia. The bias toward shares can mean a higher chance of short-term volatility, as well as other risks that come hand-in-hand with investing in emerging markets and Asia. You need a high tolerance for risk to invest in this portfolio and a long investment time horizon.
This fund selects large and medium-sized companies that show long-term growth potential – such as The Trade Desk, Alphabet and MasterCard. It is managed in historic Edinburgh – but the team make regular trips to the US (in more normal times that is!) – and research is done internally.
If you’re ready to play the long game, take on risk and want some diversification away from the stock market, this could be your fella. Some investments have exposure to smaller companies, emerging markets and Asia, meaning it could leave investors open to risk. But the rest of the fund is spread across bonds, commercial property and other areas to actually reduce stock market risk.
This fund invests in higher risk corporate bonds issued by European (inc. UK) companies to achieve a higher level of income. Some of the companies you might recognise are Netflix and Vodafone.
Psst – it’s worth keeping in mind that bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers. If an issuer has any financial difficulty, there may be a risk to some or all of the capital invested.
Manager Michael Clark takes a conservative approach to investing, aiming to produce sustainable and growing dividends with lower risk. He favours quality companies that have:
- Straightforward business models
- Predictable cashflows
- Strong balance sheets
- Good dividend cover
The portfolio consists predominantly of FTSE 100 and FTSE 250 stocks and the fund’s charges are amongst the lowest in the peer group (music to investors’ ears).
Some of the companies featured in the fund include GlaxoSmithKline, AstraZeneca and Diageo.
This fund aims to provide long-term capital growth by matching the capital performance of the S&P 500 Index, investing in large, well-known, global businesses such as Google and Visa. It’s a simple, low-cost way to invest in US large cap equities – where active fund managers struggle to add any value.
A new fund in the ranks that’s shot right into third place!
This fund is managed by Ian Spreadbury (a pretty great name for the manager of a diversified portfolio) with a view to outperform relative to the sector. It predominantly features quality UK corporate bonds, as well as gilts or other developed government securities – for example, Lloyds Banking Group, Heathrow Funding and HM Treasury.
The fund aims to provide above average total returns over the long term – wahey. The team target small caps, but only those they believe capable of growing into large caps. With globalisation, they believe small caps can expand internationally far more easily than in the past. Though fairly volatile, this fund has done well since launch. It features companies such as Novocure and Ocado.
Do I even need to tell you which fund is in number one? Probably not…
Fundsmith kicks back in first position again with big names such as Pepsi, Microsoft and Estée Lauder in its collection. Managed by Terry Smith, the portfolio is concentrated with large, liquid, ‘quality’ stocks, which are held for the long term – known as a buy-and-hold strategy.
How are you doing?
There were massive changes to daily life when the pandemic started, and now things are opening up and changing again. You probably have other priorities, but if you’re concerned about how your investments have fared amid all the changes and uncertainty, we’re here. 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.