Uncertainty caused by the American election loomed large early in the month and saw investors plump for “risk-off” assets and absolute return funds, with both physical gold ETFs and Invesco Perpetual Global Targeted Returns making it into the top ten most popular funds for the first time.
None of the most popular funds were fixed income offerings according to Bestinvest managing director Jason Hollands, who said potential inflation increases saw bond prices slide and yields rise as “investors mulled the ramifications of a Trump policy agenda”.
He said: “In the early part of the month, ahead of polling day, markets were quite jittery about both a potential for a ‘shock’ win by Donald Trump but also fears of a Democratic clean-sweep across the Senate, House of Representatives and the Presidency.”
However, Hollands added equity markets moved on quickly once healthcare stocks recovered from the threat of Hillary Clinton’s drug pricing controls and that investors quickly became “quite bullish” following Trump’s plans for growth through “a heady cocktail of big tax cuts, de-regulation and a massive infrastructure investment programme”.
For the sixth month running Fundsmith Equity was the most popular fund among Bestinvest clients as they continued to focus on equities and multi-asset funds.
The emerging markets continued to grow in popularity with Stewart Investors Asia Pacific Leaders leaping into the second most popular spot as a result of the summer recovery in Asian equity markets and its own low exposure to China.
Also growing in popularity was the HSBC American Index fund, which was ranked ninth popular in October but jumped to fifth in November, while Tilney Bestinvest Growth Portfolio, CF Woodward Equity Income and Threadneedle UK Equity Income all held on to their place in the top ten.
Liontrust Special Situations Fund and Threadneedle European Select also held on to their place in the list, ranking ninth and tenth most popular respectively.
