ii Super 60 performance review: Q3 2024
Discover how interactive investor’s rated funds performed in the three months to the end of September.
15th October 2024 09:20
Super 60 funds saw a broad range of outcomes in absolute terms over the quarter with some significant gains and a number of negative returns.
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The two top performers on the list benefited from improved sentiment towards their portfolios in the form of reduced discounts, as well as positive investment returns. TR Property Ord (LSE:TRY) produced the largest gain with a share price return of 15.05% (NAV return 11.56%). This is a portfolio of primarily pan-European property equities, with just a small allocation to UK physical property. The trust received a tailwind from the interest rate-cutting cycle that began during the quarter in both the UK and central Europe, and propelled sectors such as REITs and utilities higher.
Diverse Income Trust Ord (LSE:DIVI) posted a share price return of 8.66% on the back of a 5.89% NAV return. The trust is managed by Gervais Williams and Martin Turner, who both have significant experience in the small-cap space. The aim of this strategy is to provide investors with an attractive and growing income, together with capital growth over the longer term, and to achieve this the managers invest across the market-cap spectrum, with significant exposure to smaller-cap stocks and to the AIM market. AIM stocks continued their poor run of performance over the quarter, but this fund outperformed most comparators including the broad FTSE All-Share Index, helped by a number of larger positions such as Pan African Resources (LSE:PAF), Galliford Try Holdings (LSE:GFRD) and Just Group (LSE:JUST) posting returns in excess of 20%.
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Fidelity China Special Situations (LSE:FCSS) is the next fund on the outperformers list and despite the discount widening over the quarter it still returned 8.33% in share price terms (NAV return 12.97%). The trust has been managed by Dale Nicholls since April 2014 and benefits from an analyst team researching Asian equities that is over 50-strong with a significant presence in China.
The manager seeks undervalued companies that have the potential to deliver over the longer term through good industry dynamics and competitive advantages. Versus the MSCI China benchmark, there is a clear bias to mid- and small-cap companies. Returns over the quarter were boosted by the rapid market rally that occurred after the announcement of a stimulus package from the People’s Bank of China.
The final two funds in the top five performers, FTF ClearBridge Global Infras Income and iShares Physical Gold ETC GBP (LSE:SGLN) benefited from investors shifting to a more defensive stance over the quarter, with the former also being positively impacted by the start of the rate cutting cycle which boosted returns from its substantial exposure to the utilities sector.
At the other end of the performance table are five funds that all produced a negative return over the quarter. Of these, three are global equity funds with a growth style bias, Scottish Mortgage Ord (LSE:SMT) (-5.34%), GQG Partners Global Equity (-5.24%) and Fundsmith Equity (-1.99%). The weakness in the IT sector and parts of the communication services sector dragged these funds into negative territory, while there were also negative impacts from growth stocks within healthcare through names such as Moderna Inc (NASDAQ:MRNA) and Novo Nordisk AS ADR (NYSE:NVO), which saw significant share price weakness.
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The WisdomTree Enhanced Commodity ETF (LSE:WCOB) provides investors with exposure to four broad commodity sectors (energy, agriculture, industrial metals, and precious metals) plus up to 5% in bitcoin. Recent performance has tended to fluctuate with moves in the energy price where the fund has a large allocation, and this is reflected in a loss of just under 5% seen over the last quarter when the energy sector underperformed on the back of a weakening oil price.
With a negative return of 2.63% Janus Henderson European Selected Opportunities is the final fund on the underperformers list. In running the fund, the managers combine bottom-up and top-down research, paying close attention to global macro and sector trends. At the stock level they focus on identifying companies with attractive cash flow return on investment (CFROI), that are undervalued, or those that are at inflection points where profit margins and/or CFROI are either improving or have the potential to do so. The fund underperformed peers and its benchmark over the quarter. Attribution versus the mainstream MSCI Europe ex-UK Index shows weak stock selection across communication services, financials and healthcare.
Top five Super 60 funds in Q3 2024
| Group/Investment | 3 months | 1 year | 3 years | 5 years |
| TR Property Ord (LSE:TRY) | 15.05 | 32.88 | -13.09 | 3.29 |
| Diverse Income Trust Ord (LSE:DIVI) | 8.66 | 17.87 | -8.35 | 24.82 |
| Fidelity China Special Ord (LSE:FCSS) | 8.33 | 8.67 | -24.28 | 13.40 |
| FTF ClearBridge Global Infras Inc WAcc | 8.08 | 16.14 | 17.23 | 34.64 |
| iShares Physical Gold ETC GBP (LSE:SGLN) | 6.30 | 27.79 | 51.14 | 61.51 |
Source: Morningstar - Total Return for OE/Market Return for CE - (GBP) to 30/09/2024.
Bottom five Super 60 funds in Q3 2024
| Group/Investment | 3 months | 1 year | 3 years | 5 years |
| Fundsmith Equity I Acc | -1.99 | 13.08 | 10.62 | 50.48 |
| Janus Henderson European Sel Opps I Acc | -2.63 | 13.05 | 20.51 | 52.91 |
| WisdomTree Enhanced Cmdty UCITS ETF USD GBP (LSE:WCOG) | -4.92 | -8.14 | 13.08 | 36.50 |
| GQG Partners Global Equity I GBP Acc | -5.24 | 24.27 | 47.00 | 87.90 |
| Scottish Mortgage Ord (LSE:SMT) | -5.34 | 25.64 | -40.53 | 70.06 |
Source: Morningstar - Total Return for OE/Market Return for CE - (GBP) to 30/09/2024.
Top five Super 60 funds for a five-year period
| Group/Investment | 3 months | 1 year | 3 years | 5 years |
| The European Smaller Companies Trust PLC (LSE:ESCT) | 1.23 | 25.91 | 7.58 | 91.27 |
| GQG Partners Global Equity I GBP Acc | -5.24 | 24.27 | 47.00 | 87.90 |
| Jupiter Merian North Amer Eq I GBP Acc | -1.47 | 21.54 | 34.06 | 83.28 |
| Vanguard U.S. Eq Idx £ Acc | -0.03 | 22.73 | 33.06 | 83.20 |
| iShares Core MSCI World ETF USD Acc GBP (LSE:SWDA) | 0.23 | 20.54 | 30.77 | 70.16 |
Source: Morningstar - Total Return for OE/Market Return for CE - (GBP) to 30/09/2024.
Bottom five Super 60 funds for a five-year period
| Group/Investment | 3 months | 1 year | 3 years | 5 years |
| PIMCO GIS GlInGd Crdt Instl GBPH Acc | 4.79 | 13.27 | -4.76 | -0.70 |
| Vanguard Glb Bd Idx £ H Acc | 4.37 | 10.23 | -5.49 | -3.17 |
| M&G Global Macro Bond GBP I Acc | 1.46 | 1.62 | -8.18 | -7.24 |
| Vanguard UK Govt Bd Idx £ Dist | 2.46 | 8.13 | -23.14 | -26.22 |
| Baillie Gifford Shin Nippon Ord (LSE:BGS) | 2.09 | -8.10 | -52.40 | -35.26 |
Source: Morningstar - Total Return for OE/Market Return for CE - (GBP) to 30/09/2024.
Most-bought Super 60 funds in Q3 2024
Most-sold Super 60 funds in Q3 2024
| Scottish Mortgage Ord (LSE:SMT) |
| Fundsmith Equity I Acc (B41YBW7) |
| Vanguard LifeStrategy 80% Equity A Acc (B4PQW15) |
| City of London Ord (LSE:CTY) |
| iShares Core MSCI World ETF USD Acc GBP (LSE:SWDA) |
Changes to the Super 60 list (under review/developments)
No changes in Q3.
Super 60 videos in Q3
City of London
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Artemis Income
GQG Partners Global Equity
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.
The Super 60 investments list is selected and managed by our independent research partner Morningstar and reviewed by our in-house investment experts to help narrow down the wide choice of available investment products. We believe it represents a set of high-quality choices, across different asset classes, regions, and investment types.
However, you should note that the selection of Super 60 investments list is not a ‘personal recommendation’. This means we have not assessed your investment knowledge, your financial situation (including your ability to bear losses), your investment objectives, your risk tolerance, or your sustainability preferences.
You should ensure that any investment decisions you make are suitable for your personal circumstances, and if you are unsure about the suitability of a particular investment or think you need a personal recommendation, you should speak to a suitably qualified financial adviser.
The past performance of an investment is not a reliable indicator of future results, and ii does not guarantee or predict the future performance of the Super 60 investments list as a whole or the constituent investments.
Risk Warning(s)
The value of your investments may go down as well as up. You may not get back all the money that you invest.
Investing in emerging markets involves different risks from developed markets, in many cases the risks are greater.
The value of international investments is affected by currency fluctuations which might reduce their value in sterling.
Disclosure(s)
All funds listed are the Accumulation version of the fund, where available, where any income generated within the fund is reinvested automatically. Income versions of these funds may also be available for investors looking for income generated to be paid directly into their account.
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.
Any changes to the Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Review.
Details of all Super 60 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 have holdings in one or more Super 60 investments, which could create a conflict of interest. Any member of staff involved in the development of 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 the Super 60 investments 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 Super 60 investments list. This is to avoid personal interests conflicting with the interests of investors in the Super 60 investments.
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