| Company Name | Place change | |
| 1 | Royal London Short Term Money Mkt Y Acc | Unchanged |
| 2 | Artemis Global Income I Acc | Unchanged |
| 3 | Vanguard LifeStrategy 80% Equity A Acc | Unchanged |
| 4 | L&G Global Technology Index I Acc | Up three |
| 5 | HSBC FTSE All-World Index C Acc | Unchanged |
| 6 | Vanguard FTSE Glb All Cp Idx £ Acc | Up three |
| 7 | Vanguard LifeStrategy 100% Equity | Up one |
| 8 | Ranmore Global Equity | New |
| 9 | Scottish Mortgage Ord SMT0.45% | New |
| 10 | Greencoat UK Wind UKW0.96% | Down four |
For the past four weeks our top three funds have remained the same, with Royal London Short Term Money Mkt Y Acc still in pole position. The fund offers a “cash-like return”, with its yield closely linked to the Bank of England’s base rate. As well as low-risk income, the Royal London fund can be seen as a place to park cash while awaiting new opportunities.
In second place was Artemis Global Income. This value-focused fund is light on US exposure, holding just under one-third of its portfolio in the country. In contrast, the MSCI World Index, which follows the ups and downs of 1,320 global stocks across 23 developed markets, holds 72% in US companies. The Artemis fund launched 15 years ago, and the same stock picker – Jacob de Tusch-Lec – remains at the helm.
Tracker fund Vanguard LifeStrategy 80% Equity held on to third place. It was joined by another fund from the same stable, Vanguard LifeStrategy 100% Equity, in seventh place.
There were two new entries, although both are no strangers to the top 10. Scottish Mortgage Ord
0.45%, which invests in high-growth global companies, re-entered the table in ninth place. It was joined by Ranmore Global Equity, another global actively managed fund in 10th place. The value-focused Ranmore fund is also light on US exposure (with around a 20% weighting). It has been a stellar performer over the past three and five years, up 91.7% and 161.1%, while the average global fund has returned 31% and 53.2%,
The value investment style involves selecting stocks that appear to be trading at prices lower than their true value. Such out-of-favour companies tend to have a low price/earnings (PE) ratio, which compares a company’s value with its profits. If the company pays dividends, it will tend to have a high dividend yield.
Such companies tend to be found in sectors that are more economically sensitive, including finance, energy and materials. Value stocks are cheaper than growth stocks, with valuations more reflective of current earnings rather than future potential.
UK dividend investment trust City of London and global tracker Fidelity Index World both exited the table this week.
Funds and trusts section written by ii’s Kyle Caldwell.
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