20 funds from October's BOTB retain their place in November's shortlist. The average return from the BOTB was flat, after giving up its profits in the second half of the month, as shown in the chart below. Meanwhile, comparable professionally managed multi-asset funds on average lost between -1.12% and -1.78% over the same period, as shown.
The flat performance is a result of a divergence in fortunes for funds within the BOTB selection with almost as many funds losing value in October, which was a difficult month for investment markets, as the number that made a profit. The standout performers were Asian and emerging market equities along with fixed income funds. At the other end of the scale funds with exposure to European and UK equities underperformed. This mirrored the returns seen in the major equity market indices as shown below.
At the end of October, European and UK stocks reeled from a surge in coronavirus cases and new lockdown measures, as well as Brexit uncertainty, while US equities had one eye on the US election.
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