This month's BOTB sees some of the most wide-ranging changes for some time with only 6 funds from October's BOTB remaining in this month’s list. While many from last month’s BOTB remain in the BFBS lists there was a dynamic shift in momentum during October as the market rushed to reprice assets in view of higher future inflation prospects and tighter monetary policy.
As you can see from this month's heatmap cash and bonds were the only real havens given that 90% of funds, regardless of the underlying asset they invested in, lost money. In such an indiscriminate sell-off all investment strategies are hit, especially momentum. Unsurprisingly it was a weak month for the BOTB with an average decline of 5.44% versus 4.63% for the average managed multi-asset fund. Not a huge difference but a difference nonetheless.
Looking at the equity content of the BOTB it has moved completely out of Asian and Japanese stocks and is now split between US, UK and European stocks.
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