15 funds from November's BOTB retain their place in December's shortlist. The chart below shows what an extraordinary month November turned out to be. As I've explained in my recent newsletters the market underwent a seismic rotation on 9th November when Pfizer announced its vaccine. You can see it clearly on the chart below which shows the BOTB versus the average sector performance of professionally managed mixed-asset funds with varying equity exposures.
The announcement saw the BOTB fall almost 4% in a single day before regaining most of that in the weeks that followed. If you removed that one day then the BOTB would have outperformed the benchmarks shown. It is interesting that the BOTB portfolio outperformed them after the vaccine 'reset'. Perhaps a sign that the vaccine rotation has slowed and partially unwound? It's no surprise that 15 funds remain in the portfolio while there are 15 new ones, a sign of not throwing the baby out with the bathwater but also an acknowledgement that the investing backdrop has changed.
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