The Lindsell Train Global Equity fund has dropped off Bestinvest’s list of favourite funds.
The fund, which is managed by Nick Train, Michael Lindsell and James Bullock, has underperformed the MSCI World Index by more than 30 percentage points during the three years to January 31.
Jason Hollands, managing director at Bestinvest, blamed the fund’s recent poor performance on the decision.
“While the manager has a good long-term track record and a clearly articulated philosophy, it has endured an extended period of disappointing performance and we feel there are other global equity funds that have the edge in the current environment,” he told FTAdviser.
Lindsell Train Global Equity fund performance to January 31 2022
1 month | YTD | 1 year | 3 year | 5 year | Since launch | |
LT Global Equity Fund | -4.3% | -4.3% | -2.0% | 24.6% | 79.4% | 348.9% |
MSCI World Index | -4.4% | -4.4% | 19.3% | 55.3% | 74.7% | 255.1% |
Source: Lindsell Train
In the most recent monthly report for the fund, Nick Train said he had no plans to radically change the constituents of the fund's portfolio.
"The future investment approach of your fund will be the same as its past," he said.
"Specifically, we will continue to place the highest investment value on our analysis of the durability of the businesses we choose to invest in."
The global equity funds recommended by Bestinvest are the GuardCap Global Equity, Brown Advisory Global Leaders and Loomis Sayles Global Growth Equity Funds.
Other funds that have been taken off Bestinvest’s list include six iShares funds, including the Index-Linked Gilts ETF and Global High Yield Corporate Bond ETF, alongside parent company Blackrock’s UK Absolute Alpha Fund.
A number of new funds have been added to the list, including Ninety One’s UK Alpha Fund, Premier Miton’s UK Growth Fund and Harbourvest’s Global Private Equity Fund.
Hollands added that personally choosing funds is one of the joys of do-it-yourself investing, but also one of the challenges.
He added that choosing a fund is not just a case of doing some homework before buying them, as once invested individuals should constantly monitor their portfolios.
Hollands said: “A change in circumstances, such as the departure of a fund manager or a significant increase in the size of a fund, many require you to reassess whether it is right to stay invested or move to another fund instead."
Bestinvest's best funds
Sector | Top Funds |
|
|
|
UK Equities - Growth | AXA Framlington UK Mid Cap | Liontrust UK Growth | Premier Miton UK Growth |
|
UK Equities - Income | TM RWC UK Equity Income | TB Evenlode Income | Threadneedle UK Equity Income |
|
Target Absolute Return and Multi-Asset | JPM Global Macro Opportunities | Ninety One Diversified Income | Trojan Fund |
|
Fixed Income | Liontrust Monthly Income Bond | TwentyFour Absolute Return Credit |
| |
Europe | Barings Europe Select | BlackRock Continental European Income | BlackRock European Dynamic |
|
Japan | Baillie Gifford Japanese | JPM Japan |
| |
Global Emerging Markets and Asia Pacific | Aubrey Global Emerging Markets Opportunities | FSSA Asia Focus | Schroder ISF Asian Total Return | Stewart Investors Asia Pacific Sustainability |
North America | Dodge & Cox Worldwide US Stock | Findlay Park American Fund | Loomis Sayles US Equity Leaders |
|
Global | Fundsmith Equity | Loomis Sayles Global Growth Equity |
| |
Ethical and Sustainable | Brown Advisory US Sustainable Growth | Impax Environmental Markets Trust | Liontrust UK Ethical |
|
Real Assets | Lazard Global Listed Infrastructure Equity | International Public Partnerships | SDCL Energy Efficiency Income Trust |
|
Source: Bestinvest
The list is broken down into 12 sectors within which the firm's 300-strong investment team have selected their top two to three funds, as well as a number of fund tables.
The criteria used for judging include managers who are not constrained by “hugging benchmarks”, who personally invest in their own funds and are willing to limit the size of their funds if this starts to hamper the way it is managed.
Around 98 actively-managed funds and investment companies appear on the list, out of a total of around 4,000 funds on sale in the UK, as well as over 300 investment companies.
sally.hickey@ft.com
