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2017: The story so far, winners and losers

Posted by: Sam Lees

 

As the first quarter draws to a close we take a look at the winners and losers so far in 2017 looking for clues for the remainder of the year (click here for our look at top & bottom sectors).  Exciting, developing nations make up the top performers while Absolute Return dominates the bottom table.

Top funds

  • Indian funds take the top spots, including Jupiter India (one of our Trades of the Decade, more on that here).
  • Asian and Global Emerging Market funds make up 8/10 funds in the top table…
  • …with a Latin American fund and a UK Smaller Companies fund completing the top table.
  • Asian and emerging markets have surged in spite of worries about the impact of a stronger dollar, amongst other worries.  

A change of mindset is needed for many investors to reduce their home country bias and capitalise on the great potential in these exciting economies.  With a mix of attractive valuations, young populations, reform-minded governments, political stability and low debt, we would continue backing these winning funds through 2017.

Bottom funds

  • Targeted Absolute Return fills 6/10 bottom spots.  While “absolute returns” over periods of 1 to 5 years are “targeted” by many, there are no guarantees.  There may be negative returns over shorter periods but investors need to be wary, as we’ve said before
  • Energy and natural resources funds have cooled, after a period of good returns in late 2016…
  • A North American Smaller Companies fund makes up the table of bottom 10 performers.  The US rally has slowed as investors take stock of Trump’s approach to running the world’s largest economy.  Markets may start to lose patience, particularly if tax reform goes the way of healthcare reform (i.e. not well).

FURTHER READING

 

Table 1: Top 10 Funds

 

Name

 

Sector

Fund Size(m)

1st quarter performance %

Jupiter

 India

Specialist

837.4

17.6

Neptune

 India

Specialist

105.6

17.2

Old Mutual

 Asia Pacific

Asia Pacific ex-Japan

163.5

15.4

Invesco Perpetual

 Asian

Asia Pacific ex-Japan

948.8

15.0

Schroder

 Asian Alpha Plus

Asia Pacific ex-Japan

633.6

14.9

Baillie Gifford

 Emerging Markets Growth 

Global Emerging Markets

597.3

14.7

Baillie Gifford

 Emerging Markets Leading Cos.

Global Emerging Markets

472.6

14.6

JPM

 Asia

Asia Pacific ex-Japan

117.2

14.1

Aberdeen

 Latin American Equity

Specialist

225.8

14.0

Schroder

 UK Dynamic Smaller Cos.

UK Smaller Cos.

548.8

13.8

 

Table 2: Bottom 10 Funds

Name

 

Sector

Fund Size(m)

1st quarter performance %

Investec

 Global Energy

Specialist

79.6

-9.0

Investec

 Enhanced Natural Resources

Specialist

90.4

-4.2

Argonaut

 Absolute Return

Targeted Absolute Return

172.0

-3.2

F&C

 US Smaller Companies

North American Smaller Cos.

76.2

-3.0

Henderson

 Credit Alpha

Targeted Absolute Return

417.0

-3.0

CF Odey

 Absolute Return

Targeted Absolute Return

714.9

-2.3

Aviva Inv

 Multi Strategy Target Return

Targeted Absolute Return

4368.1

-1.4

JPM

 Global Macro Opportunities

Targeted Absolute Return

815.4

-1.4

Threadneedle

 Absolute Return Bond

Targeted Absolute Return

75.8

-1.4

BlackRock

 Natural Res Growth & Inc

Specialist

55.4

-1.2

Topic: Fund analysis


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