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What’s Hot, What’s Not: Japan and UK up, Gilts down

Posted by: Sam Lees
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Inflation linked bonds snap back down while an eclectic bunch occupies the Hot table.
 
What’s Hot
  • Liontrust Japan Opportunities (the renamed Neptune Japan Opportunities fund following Liontrust’s acquisition of Neptune) tops the table.
  • Two UK All Companies funds and two UK Smaller Companies funds make the top table. (Although L&G UK Alpha Trust is more like a smaller company fund with 74% in small and micro caps).
  • We review the latest funds and numbers for the Dynamic UK Portfolio here
  • A UK property shares fund is also in the Hot table. These returns are driven by the share prices of property companies and so have equity-like volatility vs. the steadier returns of bricks-and-mortar property funds. 
  • An absolute return fund is back in the top table. We don’t like to see these kinds of ups and downs from a fund in a supposedly lower risk sector. Buyer beware. 
  • A flexible investment fund, a climate change fund and a biotech fund make up the rest of the top funds. 
  • We’ve written a lot on biotech (see here). Great potential and great returns but very volatile.
What’s Not
  • Gilt and Index-Linked Gilt funds make up 80% of the bottom 10 funds.
  • The worst fund - Vanguard UK Inflation-Linked Gilt Index – was up over 10% during the last 6 months but fell sharply since September.
  • A US fund and a global bond fund make up the rest of the bottom table.
  • The Fidelity fund is a Value fund – buying what the market thinks is cheap without good reason – and doesn’t hold any of the favoured Growth stocks (Apple, Facebook, Amazon, Google).
  • This might surprise you, after the strong Value bounce earlier in September - but the recovery has not been sustained.
  • For more on Value investing have a look at our recent blog.
FURTHER READING

 

What's Hot
   
Name
Sector
Last Month Performance
Liontrust Japan Opportunities
 Japan
4.6
VT Teviot UK Smaller Companies
 UK Smaller Companies
4.4
LF Odey Absolute Return
 Targeted Absolute Return
4.1
ASI UK Real Estate Share TR
 Property Other
4.0
LF Tellworth UK Smaller Companies
 UK Smaller Companies
3.5
L&G UK Alpha Trust
 UK All Companies
3.4
Virgin Climate Change
 Europe Including UK
3.3
Courtiers Total Return Growth
 Flexible Investment
3.3
AXA Framlington Biotech
 Specialist
3.3
Unicorn UK Growth TR
 UK All Companies
3.3

 

What's Not
   
Name
Sector
Last Month Performance
Vanguard UK Inflation-Linked Gilt Index
 UK Index Linked Gilts
-8.3
Janus Henderson Index-Linked Bond
 UK Index Linked Gilts
-7.8
AXA Sterling Index Linked Bond
 UK Index Linked Gilts
-7.8
iShares Index Linked Gilt Index (UK)
 UK Index Linked Gilts
-5.8
Threadneedle UK Index Linked
 UK Index Linked Gilts
-5.2
L&G All Stocks Index Linked Gilt Idx Trust
 UK Index Linked Gilts
-5.2
Vanguard UK Long Duration Gilt Index
 UK Gilts
-5.1
Fidelity American Special Situations
 North America
-5.1
Janus Henderson Inst Overseas Bond
 Global Bonds
-5.0
Royal London Index Linked TR
 UK Index Linked Gilts
-5.0
Topic: Market commentary


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