See the last two teleconferences for how we expected events to unfold, particularly with mid-caps, but similar applies to smaller companies. (Here is the first of those).
What’s Hot
- The smaller company sectors in the Western economies have looked good value, if not cheap in some cases, for some time…
- …investors just needed a catalyst, though just now these are more hopes, rather than anything more.
- Property will always be a winner on expectations of lower rates, though note the chart analysis in this month’s fund edition.
- It’s similar with the tech bounce, be wary.
What’s Not
- Only the Chinese sector fell over the month, as it lacks the support of domestic investors…
- …We do not expect that to last, though the precise catalyst is unknown.
- It is a mark of the enthusiastic bounce of the last 2-3 months that no other sectors, on average, lost money.
What’s Hot
|
Name
|
26th Oct – 31st Dec
Performance %
|
|
European Smaller Companies
|
18.33
|
|
North American Smaller Companies
|
17.30
|
|
Property Other
|
17.04
|
|
Technology & Technology Innovation
|
16.04
|
|
UK Smaller Companies
|
14.97
|
What’s Not
|
Name
|
26th Oct – 31st Dec
Performance %
|
|
China/Greater China
|
-5.18
|
|
Targeted Absolute Return
|
4.52
|
|
Global Bonds
|
5.72
|
|
Specialist
|
6.40
|
|
Asia Pacific Excluding Japan
|
6.41
|