163. Investing in a market that gives you grey hair
“My fund is up over 20% in the past year, but it's been the sort of bull market that gives you grey...
In what has been a roller-coaster year for investors, some things have remained comfortingly consistent: Baillie Gifford Global Discovery has been the most popular Elite Rated fund for the second year in a row*.
Run by Douglas Brodie and investing in what he believes to be the most innovative and fast-growing smaller companies in the world, the fund drew the highest number of page views on our website in 2020 and has also been one of the best performing funds of the year.
The second most popular fund has been Rathbone Global Opportunities (up from 8th position last year) while City of London Investment Trust was third once again. Managed by Job Curtis for almost 30 years, the trust celebrated its 54th year for raising dividends in 2020, dipping into its revenue reserve to maintain its pay-out in what has been a difficult year for dividend investors.
Perhaps unsurprisingly, global equity and global equity income funds and trusts dominated the list of most popular fund views this year, as investors sought to diversify their portfolios in the face of a global pandemic and economic shutdown. As such, the most popular sector search was global too, with global equity income in fourth*.
In second place, was Asian equities – although no individual fund made it into the top ten. In third was strategic bond funds: Invesco Monthly Income Plus, was the lone fixed income fund in the top ten most viewed. Bond funds have had a very good year, with many managers citing the market lows of March and April as the “best buying opportunity for bonds in a decade.”
While COVID-19 and Brexit both dominated the headlines in 2020, FundCalibre readers were more interested in the investment subtleties, with bonds and inflation dominating their favourite topics.
The most popular article among FundCalibre visitors was one by Richard Woolnough, manager of M&G Strategic Corporate Bond, M&G Corporate Bond and M&G Optimal Income funds. ‘This time it is different: a stay at home recession’ discussed the global recession brought about by lockdown, how soon economies may recover and the impact on bonds.
The second most read was ‘Will the pandemic result in deflation or inflation?’, with ‘Different types of inflation explained’ also popular in eighth place.
Third was a more optimistic read about ‘Why Brexit could be good for bonds’.
*Source: FundCalibre Analytics, 1 January to 13 December 2020