- As names like Fundsmith Equity recover, Lindsell Train's global fund is left behind
- We look at the key drivers of underperformance
Quality and growth funds have regained their poise in recent months, to the extent that some managers are now coming out swinging against their critics. In the case of Terry Smith, this involved issuing a semi-annual letter to shareholders defending the fund’s performance versus the broader market and value stocks.
As the chart shows, some of the most popular global funds with a quality or growth bias have at least begun to catch up with the market this year. As of 11 August, Fundsmith Equity (GB00B41YBW71) was slightly ahead of MSCI World index for 2021, with names such as Rathbone Global Opportunities (GB00BH0P2M97) not far behind. Even Scottish Mortgage Investment Trust (SMT), which has taken some big hits in 2021, is not too significantly behind, while popular upstart LF Blue Whale Growth (GB00BD6PG563) has enjoyed its own recovery.