Lindsell Train Global Equity and Jupiter Income have been given the boot from Bestinvest’s list of favourite funds.
Its ‘Best Funds List’ is compiled by dividing the market into different sectors and “scouring each to pick out the funds that we think are capable of doing better than their peers and the benchmark”.
While not guaranteeing this will be the case, Bestinvest added “we have real conviction in them”.
Tough year for Lindsell Train Global Equity
2021 was not a red-letter year for Lindsell Train, particularly his £7.8bn Global Equity fund, which lagged its benchmark the MSCI World by nearly 23%.
On a one-year view the fund is sitting on losses of 3.4% compared to the IA Global sector’s gains of 7.1% and over three years it has returned 23.6%, half the average fund’s 47.4%.
Off the back of the poor run, Morningstar estimates show clients pulled £435m from the fund. However this was dwarfed by an exodus of £1.1bn from his Lindsell Train UK Equity fund, which remains on Bestinvest’s list, however.
See also: Redemptions from Nick Train’s UK fund motivated Pearson sale
Jupiter casualties
The Morningstar silver-rated Jupiter Income Trust was another departure from the Best Fund List, despite not having a bad 12 months. Last year it saw returns of 25.4% against a sector average of 18.4% across IA UK Equity Income.
Over a three-year period, however, its performance has consistently lagged its benchmark: delivering 13.5% against 21.5%.
Another high-profile casualty is Jupiter alum Alexander Darwall, who left his former outfit after nearly 25 years to set up on his own. He took the European Opportunities Trust with him when he left the firm in 2019.
While the IT Europe sector recorded an average 7.1% gain over the past year, the EOT delivered just 0.8%. An even greater divergence can be seen over a three-year span, with the EOT up 10.9% while the sector saw a staggering 46.6% rise.
| Dropped Funds |
| Legal & General UK 100 Index Trust |
| Jupiter Income Trust |
| LF Morant Wright Nippon Yield |
| BlackRock UK Absolute Alpha |
| European Opportunities Trust |
| Invesco FTSE RAFI US 1000 ETF |
| iShares $ TIPS 0-5 ETF |
| iShares £ Corporate Bond 0-5yr ETF |
| iShares £ Index-Linked Gilts ETF |
| iShares Core GDP Corporate Bond ETF |
| iShares Global High Yield Corp Bond ETF |
| iShares S&P Small Cap 600 ETF |
| SPDR® Bloomberg Barclays 1-3 Yr US Treasury Bond ETF |
| SPDR® Bloomberg Barclays 1-5 Yr Gilt ETF |
| SPDR® S&P 500 ETF |
| ASI UK Ethical Equity |
| Lindsell Train Global Equity |
New names make the grade
The updated list also added 18 funds to its roster.
- BlackRock UK Income
- Ninety One UK Alpha
- Premier Miton UK Growth
- Montanaro UK Income
- TM RWC UK Equity Income
- JPM Japan
- Insight High Grade ABS
- Atlantic House Defined Returns
- Templeton Emerging Markets IT
- LXI REIT
- Picton Property Income
- HarbourVest Global Private Equity
- Pantheon International
- SDCL Energy Efficiency Income Trust
- Invesco Physical Gold ETC
- Xtrackers IE Physical Gold GBP Hedged ETC
- Vanguard FTSE 250 UCITS ETF
- ES River & Mercantile UK Equity Smaller Companies
