Where did our clients invest last month?
With UK Covid-19 case numbers reported as falling overall and the announcement that more restrictions would be lifted on 4 July, did the top 10 funds for our clients change in June 2020? Let’s find out.
Published on 06 Jul 20205 minute read
Written by Lucy Cowley
This fund invests globally, but many holdings are in the US – the location of most of the technology industry. America’s tech giants such as PayPal and Apple feature, as well as China’s Tencent and Alibaba.
Managers Nick Train and Michael Lindsell are firm favourites in our top 10, often appearing at least once. With this fund, they use a portfolio of concentrated UK equities (with some overseas stocks) to achieve capital and income growth. Some of the companies include Unilever, Mondelez and Diageo.
Did you know…? Michael and Nick share an investment philosophy with Warren Buffet, investing in ‘quality’ companies (those that will sustain high return rates on capital).
This fund includes companies of all sizes, but when you compare it with the index, it does have a bias to mid and small caps. Managers Anthony Cross and Julian Fosh look for companies with an ‘economic advantage’ – those that enable them to produce sustained profits growth – such as intellectual property (not a villa appearing on Only Connect, more like trademarks, trade secrets and copyrights).
This fund focuses on large and medium-sized companies that show long-term growth potential and whose shares are trading on reasonable valuations. Some of the biggest names in the fund are MasterCard, Alphabet and Netflix.
Long-time no see, Lindsell Train…
Managers Michael Lindsell and Nick Train buy what they view as cash-generative businesses that are durable (there are plenty of economic storms to weather). The portfolio mainly consists of larger companies and has historically carried an overweight (aka has a higher than ‘normal’ percentage of a sector) to Japan. Some of the companies in the fund are: Unilever, London Stock Exchange and Disney.
This fund aims to deliver capital growth over the long term with an adventurous (no surprises there) strategy. It has a bias toward equities, meaning there’s more chance of short-term volatility, and a large exposure to shares including emerging markets, Asia and smaller companies, which come with their own risks. An adventurous duo to compare the fund to is: Tenzing Norgay and Edmund Hillary – the first people to climb Mount Everest (that we know of on record).
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 Amazon, Google and Visa. It’s a simple, low-cost way to invest in US large cap equities – where active fund managers actually struggle to add any value – so it could be a good way in.
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 guy. With some of its investments having exposure to smaller companies, emerging markets and Asia, it could leave investors open to risk. But the rest of the fund is spread across bonds, commercial property and other areas to reduce stock market risk and potentially generate growth.
Once again in silver, it’s fund manager Douglas Brodie with Baillie Gifford.
The team behind this fund invest in small caps that they believe can develop into large caps, such as Ocado, Tesla (yes, that Tesla) and Novocure. They believe small businesses are no longer purely domestic – globalisation means they can expand more easily and grow faster for longer. The fund can be volatile, but it has performed strongly since it started.
Surely you can guess which fund is in number one again this month? Fundsmith invests in ‘quality’ companies featuring big names such as Pepsi, Novo-Nordisk and Microsoft. Fund manager Terry Smith’s approach has: beaten the market over time, provided low volatility returns and even offered some cushioning in falling markets… Terry’s ticking a lot of boxes.
Did you know…? In 1992, Terry Smith famously upset the City establishment with his book ‘Accounting for Growth’. It detailed how some UK companies used to ‘cook their books’.
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 firstname.lastname@example.org.
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.