With the final restrictions set to lift on 21 June, then being pushed back to mid-July, and all UK adults being offered the first vaccination, has it affected where our clients put their money?
Published on 09 Jul 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 (eggs) rule: a fund’s past performance is not necessarily a guide to future performance.
Starting us off this month is an old favourite.
Manager: Michael Lindsell / Nick Train
What’s in there? Mondelez, Disney
About the fund: the management duo invest worldwide, but focus primarily on developed markets and find the bulk of the companies in the food and alcohol, internet/media/software, financials and healthcare industries. The portfolio mainly features larger companies and has historically carried an overweight to Japan.
The managers stay away from areas such as banking and mining and go toward less economically sensitive areas.
Manager: Anthony Cross / Julian Fosh
What’s in there? Diageo, GlaxoSmithKline
About the fund: the managers have a ‘quality growth’ investment style and look for companies with an economic advantage that they hope will enable them to produce sustained profits growth, such as intellectual property (this is copyright, trade secrets, trademarks, that sort of thing. Not a block of flats that won a Nobel Prize in Physics.)
Active fund managers have a rough time trying to add value to the large cap end of the American stock market, so have you thought about trying something a bit more passive?
Manager: HSBC Global Asset Management
What’s in there? Visa, Alphabet
About the fund: this fund aims to provide long-term capital growth – good so far – by matching the capital performance of the S&P 500 Index by replicating its stocks.
Longstanding manager Alister Hibbert stepped down from this fund at the end of 2020, but his replacement, Giles Rothbarth, is one of the top young fund managers in the City of London.
Manager: Giles Rothbarth
What’s in there? Volvo, Novo-Nordisk
About the fund: Rothbarth aims to outperform in all market conditions – music to most investors' ears. As you might imagine, this means he needs to be very flexible. He builds the portfolio around a core of high quality stocks he believes can provide growth over the long term, then he will rotate the portfolio into different types of companies depending on his shorter-term view of the market.
Our most adventurous portfolio. Think Jack on his way up the beanstalk...
What’s in there? Asset allocation – 86% equity. Geographical – 54% UK. Capitalisation – 59% large.
About the fund: this little wonder is for those with a very high tolerance for risk and who 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.
Trips to America for the Edinburgh-based team have been on hold lately…
Manager: Gary Robinson / Ian Tabberer
What’s in there? Amazon, Netflix
About the fund: this fund selects large and medium-sized companies that have long-term growth potential and trade on reasonable valuations.
Think the England football team in the Euros 2020.
What’s in there? Asset allocation – 74% equity. Geographical – 54% UK. Capitalisation – 60% large caps.
About the fund: high tolerance for risk and a long-term investment horizon? This fund is aimed at the people who tick both boxes. It has a large exposure to shares, including smaller companies, emerging markets and Asia, meaning a higher chance of short-term volatility… hold on to your hats.
Third place is nothing to turn your nose up at!
Manager: Douglas Brodie
What’s in there? Tesla, Ocado
About the fund: differing from Baillie Gifford American, the team behind this fund targets a very specific type of company – those capable of growing into large caps. It’s quite volatile, but it has performed well since launch in 2011.
Growth – think Jack’s beanstock (get it?)
What’s in there? Asset allocation – 64% equity. Geographical – 53% UK. Capitalisation – 61% large caps.
About the fund: if you’re ready to invest for a long time, take on risk, and want some diversification away from the stock market, our good friend here could be 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 (to help reduce risk).
On the highest podium again!
Manager: Terry Smith
What’s in there? Facebook, Estée Lauder
About the fund: In the ‘90s, Terry Smith famously upset the establishment with his book Accounting for Growth. But his strong views on the fund management industry have done nothing to shake him from the top spot with our clients. His approach has beaten the market over time, provided low volatility and a little bit of a hedge in falling markets. What’s not to like?
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.
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.