ii Super 60 review: Q2 2021
Find out how interactive investor’s rated funds performed in the three months up to the end of June.
9th July 2021 14:38
by Dzmitry Lipski from interactive investor
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Find out how interactive investor’s list of rated funds performed in the three months up to the end of June.
ii Super 60 fund selections
Global financial markets continued their recovery in the second quarter of 2021, mainly led by the accelerated vaccination rates in most developed economies – in mid-June, around 50% of the US and European population had their jabs. The rate in the UK was over 60%.
Along with relaxing lockdown restrictions, consumer spending rapidly increased and the focus has now shifted to inflation and rising consumer prices. While most experts believe this inflation is transitory, as a result of supply shortages and rate will normalise in the short to medium term, investors have started to pay a lot of attention to central banks’ policies.
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Property as an asset class had a very strong quarter on the back of strong consumer confidence and economy reopening. BMO Commercial Property Trust (LSE:BCPT), which has large exposure to the retail segment, returned nearly 30% for the period and over 50% in one year, which gives investors an indication that the momentum could positively reflect on the long-term numbers going forward. TR Property (LSE:TRY)trust, which invests primarily in listed companies, and has large exposure to Europe, returned over 15% in Q2 and continued its strong performance over the long term.
During the quarter, emerging markets continued their battle with the Covid-19 pandemic. Despite the difficult situation in India and Brazil, their markets stood up well. Mobius Investment Trust (LSE:MMIT), which has large exposure to India, and Utilico Emerging Markets (LSE:UEM) returned 26% and 15% respectively in Q2, proving their strong stock selection abilities. Scottish Mortgage (LSE:SMT)investment trust completes the Super 60 top five best-performing holdings, delivering a return of more than 17% for the period.
The slower vaccination roll-out and resurgence in cases in Japan, led to new restrictions and negative impact on the market. As a result, Lindsell Train Japanese Equityfund, which favours large-cap growth companies, delivered 0.1% in Q2, and the more “nimble” Baillie Gifford Shin Nippon (LSE:BGS)trust, that invests primarily in smaller companies, lost over 3%.
Debt strategies also continued their struggle in Q2 on the back of falling prices, due to fears that inflation and potential interest rate rise will make new issues more attractive. M&G Global Macro Bond fund, which runs a flexible mandate, was up 0.2% for the period. Performance of Chinese and Asia-Pacific stocks was mixed during Q2, with Chinese authorities tightening the regulation on technology and fintech companies. As a result, Fidelity China Special Situations (LSE:FCSS)trust retuned 0.4% and Murray International (LSE:MYI) was down 0.6%.
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Considering the market dynamics during the period, all Super 60 holdings performed in line with our expectations. However, with earnings season approaching and the economy still being in the early stages of recovery, higher volatility is not unlikely going forward.
Top five ii Super 60 funds in Q2 2021
| Performance (%) | ||||
|---|---|---|---|---|
| Investment | Q2 | 1 year | 3 Years | 5 Years |
| BMO Commercial Property Trust (LSE:BCPT) | 29.6 | 50.6 | -11.7 | -0.2 |
| Mobius Investment Trust (LSE:MMIT) | 26 | 58.2 | ||
| Scottish Mortgage (LSE:SMT) | 17.3 | 62.8 | 36.6 | 38.3 |
| TR Property (LSE:TRY) | 15.4 | 37.6 | 5.3 | 12.8 |
| Utilico Emerging Markets (LSE:UEM) | 15 | 31.5 | 8.3 | 6.9 |
Source: Morningstar Total returns in GBP.
Bottom five ii Super 60 funds in Q2 2021
| Performance (%) | ||||
|---|---|---|---|---|
| Investment | Q2 | 1 year | 3 Years | 5 Years |
| Fidelity China Special Situations (LSE:FCSS) | 0.5 | 52.2 | 21.7 | 25.3 |
| M&G Global Macro Bond | 0.3 | -8.3 | 3.8 | 3.1 |
| Lindsell Train Japanese Equity | 0.1 | -10.1 | -1.3 | 8.4 |
| Murray International (LSE:MYI) | -0.6 | 25 | 6.3 | 8.5 |
| Baillie Gifford Shin Nippon (LSE:BGS) | -3.4 | 19.3 | 5.8 | 15.3 |
Source: Morningstar Total returns in GBP.
Most-traded Super 60 funds in Q2 2021
Changes to the ii Super 60 list (under review/developments)
- Royal London UK Equity Income Fund was removed from under formal review and retained its rating as UK Equity Income/Core option
- Scottish Mortgage Investment Trust was removed from under formal review and retained its rating as Adventurous/Global Equity option
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These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.