ii super 60

Name	Investment Category	Selection rationale	Invest now
Fidelity Index UK Fund	Low cost	find out more	trade
Liontrust Special Situations	Core	find out more	trade
LF Lindsell Train UK Equity	Core	find out more	trade
CFP SDL UK Buffettology	Adventurous	find out more	trade
River & Mercantile UK Recovery	Adventurous	find out more	trade
Marlborough Multi Cap Growth	Adventurous	find out more	trade

Formal review concluded. This Super 60 Fund is retained. Find out more

Name	Investment Category	Selection rationale	Invest now
Vanguard FTSE UK Equity Income Index	Low cost	find out more	trade
Royal London UK Equity Income	Core	find out more	trade
City of London IT	Income	find out more	trade
Man GLG UK Income	Adventurous	find out more	trade
Schroder Income	Adventurous	find out more	trade

This Super 60 fund is currently under formal review. Find out more

Name	Investment Category	Selection rationale	Invest now
SPDR S&P Global Dividend Aristocrats UCITS ETF GBP	Low cost	find out more	trade
Fidelity Global Dividend	Core	find out more	trade
Morgan Stanley Global Brands Equity Income	Income	find out more	trade
Murray International IT	Adventurous	find out more	trade

This fund is a new addition to the Super 60. Find out more

The classification of this Super 60 fund has changed. Find out more

Name	Investment Category	Selection rationale	Invest now
Fidelity Index Emerging Markets	Low cost	find out more	trade
JPMorgan Emerging Markets IT	Core	find out more	trade
Utilico Emerging Markets IT	Income	find out more	trade
Mobius Investment Trust	Adventurous	find out more	trade

Formal review concluded. This Super 60 Fund is retained. Find out more

This is a new addition to the Super 60. Find out more

The BlackRock Frontiers IT has been removed. Find out more

Templeton EM Smaller Companies has been removed. Find out more

Name	Investment Category	Selection rationale	Invest now
Vanguard US Equity Index Fund	Low cost	find out more	trade
Merian North American Equity	Core	find out more	trade
North American Income IT	Income	find out more	trade
Artemis US Smaller Companies	Smaller Company	find out more	trade
LF Miton US Opportunities	Adventurous	find out more	trade

Formal review concluded. This Super 60 Fund is retained. Find out more

Name	Investment Category	Selection rationale	Invest now
BMO Commercial Property	Income	find out more	trade
TR Property IT	Adventurous	find out more	trade

This Super 60 fund is currently under formal review. Find out more

LF Lindsell Train UK Equity fund

In line with our stated methodology, Lindsell Train UK Equity was put under formal review on 29 November 2019 after being downgraded by two independent external agencies. Given its highly concentrated nature, we wanted to reassure ourselves that there had been no deterioration in liquidity.

The interactive investor selection team conducted extensive analysis on the liquidity, capacity and concentration of Lindsell Train UK Equity, and spoke to the fund manager at length. The key outcome is that our investment selection committee is comfortable with the liquidity of the fund, it has been removed from being under formal review, and it will remain on our Super 60 list. The majority of the holdings are large, liquid companies with diversified revenue streams. In terms of capacity, there is plenty of room for further growth without compromising the mandate. The fund has always had a concentrated, high conviction approach but has a low turnover and long-term successful track record.

(19 January 2020)

Merian North American Equity fund

In line with our stated methodology, Merian North American Equity fund was put under formal review on 25 February 2020 following the announcement that Merian has been acquired by Jupiter and a co-manager of the fund will be leaving the business.

Interactive investor’s selection team has been closely monitoring the situation and speaking to Merian to gain a better understanding of what changes, if any, are likely to take place after the acquisition, that could impact the fund’s team structure, philosophy or process. The details confirmed with Merian are relatively high level, and we are comfortable that the key fund managers are well committed and incentivised which should encourage team stability and continuity of the investment process under Jupiter’s corporate umbrella. As a result, the fund is no longer under formal review, and it will remain on our Super 60 list.

(24 April 2020)

Inclusion of Morgan Stanley Global Brands Equity Income fund

This is the first new addition since the launch of the Super 60. In-line with our stated methodology, we have conducted rigorous quantitative analysis on the fund and met the investment team before making our final decision. The fund, which is featured as the ‘Income’ option in the Global Equity Income category, showed exceptional qualities in terms of investment process, performance and capital protection, income generation, strength of the team, transparency, and value for money. All this helped us to build conviction in the fund during our due diligence process.

Removal of Artemis Global Income fund

This decision has been made in-line with our stated methodology and after conducting a formal in-depth review of the fund. That included sector and peer group analysis as well as meeting the manager and the team. The manager’s investment style has contributed to the fund’s comparatively disappointing performance against peers, but more recently this has also been compounded by some poor stock selection decisions.

Reclassification of Murray International

The decision to reclassify Murray International from Global Equity Income/ Income to Global Equity Income/ Adventurous is in-line with our stated methodology. We have conducted a careful review of the risks associated with the trust, including the style of the manager and portfolio positioning as well as assessment of the sector. In conclusion, we maintain our conviction in the manager and his process. The risk re-categorisation was needed due to the current, post sell-off market environment and the possibility of longer recovery periods for value investing .

(20 July 2020)

Utilico Emerging Markets Trust

In line with our stated methodology, Utilico Emerging Markets Investment Trust was put under formal review on 5 August 2020 due to performance concerns.

Our formal review included performance and risk analysis, portfolio positioning and robustness of the investment process. We have also been actively communicating with the manager on various additional aspects including the shape of the capital reserves, stability of the prospective yield and discount management. Our findings led us to the conclusion that the trust has clearly managed to provide capital protection features over the long term, while offering one of the most attractive yields in the sector. Following the market shock earlier this year, the trust continues its recovery and has significantly improved its short-term return profile, while long-term numbers remain strong. Last but not least, the managers were very open and transparent in discussing major performance detractors and their outlook for the trust has provided all the information we required to retain our conviction. Therefore, we decided to maintain our rating and remove the trust from under formal review.

(30 October 2020)

BMO Commercial Property Investment Trust

The BMO Commercial Property Investment Trust is included in the ii Super 60 list of rated funds as an Income option within the Property category.

In line with our stated methodology, the investment selection committee decided to put the trust under formal review on 23 July 2020 due to continued uncertainty around income payments and its persistently wide share price discount to net asset value. The investment trust suspended its monthly dividend payment in April and at the time of announcing the formal review (23 July) there had not been any official announcement as to when dividends will be resumed.

As part of the formal review process, we will conduct an in-depth appraisal of the investment process, the shape and quality of the portfolio, prospects for resumption of dividend payments, and will consider the various factors that contributed to the significant discount that the trust is trading at.

(23 July 2020)

Since putting the trust under formal review, in early August BMO Commercial Property reintroduced the dividend, but at 50% lower than the previous rate.

Update: 20 August 2020

The investment selection committee notes the recent publication of the net asset value return figures for the second quarter of 2020, in which BMO Commercial Property Trust recorded a 2.9% decline for the quarter ended 30 June. We also note that while the backdrop remains challenging for property as an asset class rent collection improved for the trust in the second quarter, at 83% versus 74% for the first quarter. We also welcome the return to paying a monthly dividend, albeit at a reduced rate, from August onwards.

Our team is actively investigating the performance, discount to net asset value and management of the trust, and will come up with further details in due course.

Schroder Income

The Schroder Income Fund is included in the ii Super 60 list of rated funds as an Adventurous option within the UK Equity Income category.

In line with our stated methodology, the investment selection committee decided to put the fund under formal review on 3rd August 2020 following an extended period of underperformance. Our in-depth review process will consider the various factors that contributed to the return profile of the fund, and will include a review of the team, investment process and portfolio positioning.

(3 August 2020)

BlackRock Frontiers Investment Trust

The BlackRock Frontiers Investment Trust was included in the ii Super 60 list of rated funds as an Adventurous option within the Emerging Markets category. On 7 September 2020, the Investment Selection Committee removed the BlackRock Frontiers Trust from our Super 60 rated list. The decision was made in line with our stated methodology and after conducting a formal in-depth review of the trust, which included asset class, sector and peer group analysis as well as meeting the manager and the team. We acknowledge this area of the market has been struggling, but believe that due to an extended period of unsatisfactory performance the trust is no longer suitable to be an endorsed option for our customers.

(7 September 2020)

Removal of Templeton Emerging Markets Smaller Companies

We removed the Templeton Emerging Markets Smaller Companies Fund from our Super 60 rated list due to unsatisfactory performance. The decision was made in line with our stated methodology and after conducting a formal detailed review of the fund and meeting the team. Our analysis, which included a review of the asset class and the whole sector as well as peer group assessment, showed that the fund has been struggling to deliver against its objective and the category average. Therefore, we believe the fund is no longer suitable to be an endorsed option.

(29 September 2020)

Inclusion of Mobius Investment Trust

We added Mobius Investment Trust to our Super 60 rated list as an Emerging Markets Adventurous option. Following our stated methodology, we have conducted in-depth quantitative analysis on the trust and the sector and met the manager before making our final decision.

Although the strategy has a relatively short but successful performance profile, the managers have an exceptional long-term track record in delivering above-market returns previously leading a number of specialist emerging and frontier market mandates at Franklin Templeton. In addition to providing diversification benefits and great scope for growth through a well-defined process, the team has been very open and transparent on the company structure and how they closely align their interest with those of their investors, which further helped us to build strong conviction in the trust.

(29 September 2020)