Eight Stock(ing) fillers in your investment portfolio

With just three weeks to go until Christmas, and a growing feeling of panic about what to certain relatives, we thought it would be fun to see which Christmas-related stocks some of our favourite fund managers have in their portfolios:

Christmas dinner: Tesco

When Big Ben chimes twelve on New Year’s Eve, Tesco will have been around for 100 years. Founded in 1919, the multi-national grocer will be providing Christmas dinner and all the trimmings to many UK households. It’s a top ten holding* in BlackRock UK Absolute Alpha.

Making a toast: Diageo

Diageo, a top ten holding* in Liontrust Special Situations, really captures the Christmas spirit (pardon the pun!). Whether we are buying Johnnie Walker whisky as a present, or popping the cork of a Moet & Chandon champagne at a New Year’s Eve party, the world’s second largest distiller is likely to be helping some of us enjoy the festive season.

Toys: Argos

Where would any parent be without Argos? Nothing really beats the convenience of this catalogue retailer in the Christmas rush. With click and collect increasingly popular, and now available at owner Sainsbury’s supermarkets – a top rental income-payer* in Janus Henderson UK Property fund- it is literally a one-stop shop at Christmas.

Socks and pants: M&S

We’ve all got a difficult relative who either doesn’t want anything or doesn’t need anything. But as Christmas is all about giving, not receiving, we still like to make an effort. And what better than socks or pants in that situation? While it gets bad press for fashion, and is closing some food retail outlets, M&S has rarely got it wrong when it comes to undies. A holding** in Investec UK Special Situations, it’s another Christmas cracker.

Party dresses: Boohoo

An AIM-listed company, Manchester-based boohoo.com is an online fashion retailer aimed at 16-30 year-olds. For youngsters keen to dress like celebrities, for a fraction of the price, it’s a popular option. A top ten holding* in Standard Life Investments UK Ethical fund, it has appeal for young-party-goers at this time of year.

Last minute shopping: Amazon

When it comes to online shopping, Amazon dominates. A top ten holding* in Rathbone Global Opportunities fund, it accounts for more than half of online retail transactions. Many last-minute purchases in the run-up to Christmas are likely to be made via the company, as Prime subscribers (and friends of Prime subscribers!) make the most of next-day delivery options.

Covering the cost: WorldPay

Then comes the hard bit: how to pay for it all?! Worldpay is a global leader in the payment processing technology that makes online shopping possible. A holding in Marlborough UK Multi-Cap Growth fund, it is benefiting from the continuing growth of e-commerce and the increasing use of credit and debit cards around the globe.

Christmas movies: Netflix

When the shopping done and Christmas lunch is eaten, it will finally be time to put your feet up and enjoy a Christmas classic. Netflix, a top ten holding* in Baillie Gifford Strategic Bond fund, the subscription-based streaming media service will be showing Christmas films and re-runs of much loved classics, from Only Fools and Horses, to Doctor Who, Call the Midwife and the more recent, The Crown.

Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. Darius's views are his own and do not constitute financial advice.
*Fund fact sheets, as at 31 October 2018
**FE Analytics, as at 30 September 3018
Published on 03/12/2018