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Reverse Bonkers - The worst funds since mid-February

Posted by: Brian Dennehy
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Membership level: Free
 
In the last teleconference, Gold Member Jason asked if we could provide some stats on the worst funds since the market peak.  That is what we are doing here.  It is a start and we will refine this in coming weeks.
 
First, the rationale. Buying the worst performing funds or stocks assuming a bounce must lie ahead does not work as an investment strategy – most of the time.  There is one very important exception, and that is when markets or sectors fall rapidly, which tends to bring down the good with the bad. Amongst the worst performers are funds with considerable “bounceability”, and they sit alongside perpetual duds – obviously it is important to identify the former, and avoid the latter.  In coming weeks we will look in more detail at how to do that.
 
To get this going, below are three set of data, each including a top 10 and bottom 10 since the peak of 20th February:
  1. Top and bottom across the totality of funds, across all sectors
  2. Top and bottom across the three UK stock market sectors (UK All, UK Equity Income, UK Smaller)
  3. Top and bottom across the three sterling bond sectors (corporate bond, high yield bond, strategic bond)
Not surprisingly, in section 1 the top funds are dominated by global bond funds. They benefitted from two elements – a falling pound and better quality government bond funds holding steady.  Brazil and some energy funds feature amongst the duds. But UK-invested funds dominate the bottom 10 – look out for opportunities amongst these, but don’t jump the gun.
 
In section 2, UK equities, even the best funds look ugly, and the worst funds are edging towards losses of 50% in just one month.  Amongst the bottom funds are some with considerable attractions once there are signs of the market bottoming.
 
In section 3, UK non-Government bonds, the best funds are mostly short-dated and high quality – so naturally less volatile – though only one is positive over the month. Amongst the bottom funds I again see funds I would want to buy as the market turns.
 
In coming weeks I will expand this discussion, and identify specific funds for a pending buy-list.  Do let us know your thoughts on this.
 
FURTHER READING

 

Best and Worst Funds since Feb 20th

All
     
Best
     
Name
Sector
Fund Size(m)
Performance
Vanguard Japan Government Bond Index
IA Global Bonds
478.7
12.1
Scottish Widows International Bond
IA Global Bonds
204.9
12.0
MFS Meridian US Government Bond
IA Global Bonds
318.2
9.4
Wellington Global Total Return (UCITS)**
IA Targeted Absolute Return
135.1
9.4
GS US Mortgage Backed Securities Portfolio
IA Specialist
314.3
9.3
Standard Life Investments Global Bond
IA Global Bonds
341.2
9.2
iShares Overseas Government Bond Index (UK)
IA Global Bonds
1982.5
8.7
T. Rowe Price Global Aggregate Bond
IA Global Bonds
418.1
8.3
Wellington World Bond
IA Global Bonds
240.3
7.8
Pimco GIS Euro Short-Term
IA Global Bonds
655.4
7.8
       
Worst
     
Name
Sector
Fund Size(m)
Performance
Schroder ISF Global Energy
IA Global
189.6
-59.5
BlackRock GF World Energy
IA Specialist
919.6
-48.7
Guinness Global Energy
IA Global
67.6
-48.2
Aberforth UK Small Companies
IA UK Smaller Companies
186.8
-47.8
Merian UK Mid Cap
IA UK All Companies
1865.5
-47.5
ASI UK Unconstrained Equity
IA UK All Companies
369.8
-47.3
ASI UK Recovery Equity
IA UK All Companies
115.7
-46.7
Liontrust UK Mid Cap
IA UK All Companies
71.3
-46.0
JPM Brazil Equity
IA Specialist
66.7
-45.6
Merian UK Dynamic Equity
IA UK All Companies
291.5
-45.5
       
Sterling Bond Sectors
     
Best
     
Name
Sector
Fund Size(m)
Performance
Allianz Strategic Bond
IA Sterling Strategic Bond
1101.1
5.2
Waverton Sterling Bond
IA Sterling Strategic Bond
245.3
-0.8
Hermes Unconstrained Credit
IA Sterling Strategic Bond
419.8
-1.6
Rathbone High Quality Bond Fund
IA Sterling Corporate Bond
223.2
-2.5
AXA Sterling Credit Short Duration Bond
IA Sterling Corporate Bond
674.5
-3.0
M&G UK Inflation Linked Corporate Bond
IA Sterling Strategic Bond
801.3
-3.0
AXA Sterling Strategic Bond
IA Sterling Strategic Bond
156.3
-3.2
M&G Short Dated Corporate Bond
IA Sterling Corporate Bond
315.7
-3.3
Vanguard UK Short-Term Investment Grade Bond Index
IA Sterling Corporate Bond
1962.9
-3.3
Royal London Investment Grade Short Dated Credit
IA Sterling Corporate Bond
1404.8
-3.4
       
Worst
     
Name
Sector
Fund Size(m)
Performance
Legg Mason Western Asset Macro Opportunities Bond
IA Sterling Strategic Bond
5075.4
-21.3
Baillie Gifford High Yield Bond
IA Sterling High Yield
635.5
-21.3
GS Europe High Yield Bond Portfolio
IA Sterling High Yield
64.7
-20.8
Schroder High Yield Opportunities
IA Sterling High Yield
512.3
-20.5
Kames High Yield Bond
IA Sterling High Yield
446.0
-19.7
T. Rowe Price Global High Income Bond
IA Sterling High Yield
306.9
-19.4
Baring Global High Yield Bond
IA Sterling High Yield
1572.5
-19.1
Baring European High Yield Bond
IA Sterling High Yield
489.2
-18.9
Artemis High Income
IA Sterling Strategic Bond
1088.8
-18.6
L&G High Income Trust
IA Sterling High Yield
1286.5
-18.2
       
UK Equity Sectors
     
Best
     
Name
Sector
Fund Size(m)
Performance
Ardevora UK Equity
IA UK All Companies
142.3
-22.7
Lindsell Train LF Lindsell Train UK Equity
IA UK All Companies
5946.4
-25.6
LF Miton UK Multi Cap Income
IA UK Equity Income
907.7
-25.6
Aviva Inv UK Equity MoM 1
IA UK All Companies
274.7
-25.7
Investec UK Equity Income
IA UK All Companies
96.3
-25.7
Troy Asset Management Ltd Trojan Income
IA UK Equity Income
3150.2
-25.9
TB Evenlode Income
IA UK All Companies
3757.0
-26.6
Royal London Sustainable Leaders Trust
IA UK All Companies
891.9
-26.7
Virgin UK Index Tracking
IA UK All Companies
2916.8
-26.7
JOHCM UK Opportunities
IA UK All Companies
368.5
-27.0
       
Worst
     
Name
Sector
Fund Size(m)
Performance
Aberforth UK Small Companies
IA UK Smaller Companies
186.8
-47.8
Merian UK Mid Cap
IA UK All Companies
1865.5
-47.5
ASI UK Unconstrained Equity
IA UK All Companies
369.8
-47.3
ASI UK Recovery Equity
IA UK All Companies
115.7
-46.7
Liontrust UK Mid Cap
IA UK All Companies
71.3
-46.0
Merian UK Dynamic Equity
IA UK All Companies
291.5
-45.5
Jupiter UK Growth
IA UK All Companies
444.3
-45.2
Aviva Inv UK Listed Equity High Alpha
IA UK All Companies
207.9
-45.1
Schroder UK Mid 250
IA UK All Companies
621.0
-44.8
Aviva Inv UK Listed Equity Unconstrained**
IA UK All Companies
176.7
-44.4
Topic: Market commentary


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  • Comment by: Dale 20.03.2020 @ 22:21:49PM

    Interesting to see a passive tracker fund in the top 10 list of best performers.

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