21 funds from September's BOTB retain their place in October's shortlist. The average return from the BOTB for the month of September was 1.04%. Comparable professionally managed multi-asset funds on average lost -0.48% as shown in the chart below.
Despite the strong return for the BOTB it was a volatile month as the melt-up in US technology stocks threatened to unwind, before the sector eventually stabilised and rebounded. Given that the majority of September's BOTB funds make a reappearance in October's list then the risk posed by a repeat of the technology stock sell-off remains. But while investment headlines fuelled investor panic during September those investors who stayed invested were rewarded. Eventually, the rising political risks surrounding Brexit saw UK equities stumble in the second half of September, dragging down the professionally managed multi-asset funds because of their bias towards UK equities. The BOTB's minimal exposure to UK equities was beneficial.
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