Yahoo Finance Scottish Mortgage leads Interactive Investor’s best buy list
The UK’s biggest and most popular investment trust has topped Interactive Investor’s best buy list of funds with a performance that delivered 190% in returns.
The direct-to-consumer investment platform’s Super 60 list saw more than two-thirds (72%) of active picks outperformed their respective benchmark index over the past three years.
Scottish Mortgage was the overall best performing constituent, returning 190% and almost double the return of the second-best performing constituent, TR European Growth, which has been recently renamed European Smaller Companies Trust.
However, the UK’s second-largest funds supermarket warned that for the two top performers, it would be difficult to imagine such extraordinary returns being repeated any time soon over a three-year period.
At the other end of the spectrum, BMO Commercial Property was the worst performing Super 60 rated fund over 3 years, down 3.6%, followed by Lindsell Train Japanese Equity Fund, down 2.73%.
The fund co-managed by Nick Train has been spared from ejection, but it is under formal review since November.
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FTF Martin Currie Japan Equity has been removed from the top list while the Lindsell Train fund as been reclassified as “adventurous”.
The Liontrust Special Situations fund, CFP SDL UK Buffettology fund, JPMorgan European Income Trust, FTF Martin Currie IF Japan Equity Trust, and the Marlborough Global Bond fund have all been ejected from the Super 60.
Still, the list turnover has been relatively low, under 15% every year.
New additions include Ninety One UK Alpha Fund, Jupiter UK Special Situations Fund, BlackRock Continental European Income Fund, PIMCO Global Investment Grade Credit fund, Jupiter Japan Income fund.
Moira O’Neill, head of personal finance at Interactive Investor, said: “Investors need options they can trust. The Super 60 can help you pick investments that match your investment style and interests, with the list including a wide range of active and passive funds, investment trusts, and exchange-traded funds (ETFs), rigorously selected by impartial experts across core, adventurous, low cost and smaller company categories.
Interactive Investor handed over the day-to-day running of its Super 60 list to Morningstar to avoid conflicts of interest around its recommendations of funds to retail investors.
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“The latest changes show Morningstar making a clear mark as they take over our list. But they are more of a makeover than a face lift, with most of our selections staying, and a few interesting surprises,” O’Neill added.
Over one year the Super 60 performance analysis is more mixed — only 51% of active selections outperformed their benchmarks.
“We all have to be realistic: investing is a long-term process and we can’t be overly influenced by short term data, good or bad," said Dzmitry Lipski, head of funds research, Interactive Investor.
“As we hand over to Morningstar for the day-to-day management, we can take a calm and objective view as our lists evolve. I look forward to monitoring Morningstar’s performance and process as they follow our methodology.”
