ii Super 60 Annual Review
At ii, we continually review the performance of our Super 60 constituents. This involves monitoring both general market and fund-specific events, as well as regularly meeting the fund managers.
We also perform a full annual review of the entire list, looking at the entire universe of potential funds for each investment category to ensure we are happy we include only the best-in-class products. We consider a wide range of criteria, including a focus on consistency of performance, but it is important to note that past performance is not an indicator of future returns.
What we look for
We try to find individual investments that cover a range of investment styles and approaches. Core vs adventurous, value vs growth, and large cap vs smaller companies are obvious variations, but there are more subtle differences that could lead us to retain funds. While some funds might have similar basic descriptions, their managers might adopt markedly different investment approaches. This might result in holdings that offer greater diversification for investors.
Consistent outperformers are scrutinised, so we do not pick funds at the top of their cycle that are likely heading into underperformance. On the other hand, a fund manager may have underperformed the peer group recently, for example due to being contrarian. However, if their investment approach remains robust and their strategy has been successful over a longer historical timeframe, we may be happy to retain our conviction and keep them on the Super 60 list.
For example, quality growth strategies have performed strongly over recent years, largely benefiting from style tailwind (e.g. LF Lindsell Train UK Equity). In contrast, value investing has been out of favour, which has presented a significant headwind for value-biased strategies on the list (e.g. R&M UK Recovery, Schroder Income & Artemis Global Income).
This can be an extremely difficult judgment to make, and we recognise we will not always get every choice right. For every ‘good’ fund manager that follows a period of underperformance with strong outperformance, there are others who have perhaps outlasted their original investment ideas.
Our robust criteria and assessment process, in which we have no conflicts of interest and focus on the best outcome for our clients, are designed to help us make the best decision we can every time.
The latest review
We have now completed the Super 60 Annual Review and are pleased to confirm there are no changes. Several potential new entries were carefully considered, but all were added to our reserve list after lengthy and challenging discussion among our panel of selectors.
“Our funds research team and selection committee completed a full review of the funds universe, in which we analysed each sector for the best options. We completed a full review of existing and prospective choices and made a final decision after everyone had the opportunity to analyse and discuss all possible options.”
“We will continue to monitor the market and meet with fund managers regularly throughout 2020 to ensure our list continues to offer the best options for our investors.”
Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.
Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.
The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.
If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.
Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Review.
Details of all recommendations issued by ii during the previous 12 month period can be found here.
ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.
In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.