In the six months since our Rated Funds were introduced at the end of January, 14 out of the 267 passive and actively managed funds, investment trusts and exchange traded funds have lost money.
Stunning returns have been made by a large cohort of Money Observer’s Rated Funds since we revealed the 2019 members at the end of January.
Our specialist gold selection tops the performance charts (see below), but in a period when markets at large regained their mojo after the bitter disappointments of 2018, it is group of overtly equity growth-oriented US and global selections that have made the most money for investors – with gains of 20% or more recorded by 28 Rated Funds.
In early March of this year, when Money Observer first highlighted the worrying issues that would ultimately lead to disaster for investors in LF Woodford Equity Income fund, we listed several reasons for concern, beyond the fund’s (WEIF’s) very poor performance.
The cult of the “star manager” has several thousand fewer disciples these days. The “gating” of LF Woodford Equity Income fund, leaving private investors unable to access their investments, clearly not only impacts the reputation of fallen star Neil Woodford but risks tarring other high-profile actively managed funds, and those who run them, with the same brush.
By and large, the first three months of 2019 have been very positive for investors in our 2019 Rated Funds. These are split into 15 easy-to-understand asset groups and are comprised of 201 actively managed funds and investment trusts, plus a further 66 passive index-tracking funds.
JPMorgan Global Growth & Income IT
Jeroen Huysinga is leaving the fund management industry to pursue a career in the charitable sector. Huysinga was the sole manager on this global equity income trust from September 2008 until August 2017, when he was joined by Timothy Woodhouse as co-manager.
A decade ago, in early March 2009, the stockmarket equivalent of blood on the streets was in full flow. Hindsight shows it was a very good time to buy bonds or equities, not to mention real assets such as property and infrastructure. It was the nadir of the global financial crisis and, bar a few bumps on the way, stockmarkets of developed countries have not looked back, particularly in the US, where the benchmark S&P 500 index has gained in excess of 400% in sterling-adjusted terms.
Constructing a diversified portfolio that is well-placed to weather storms and take advantage of future bright spots is no mean feat. That is where Money Observer’s 12 model portfolios aim to help investors reach their financial goals.