What’s Hot? What’s Not? Natural Resources rising, Absolute return falling

Posted by: Sam Lees

 

A bit of a mixture for the last What’s Hot? What’s Not? of 2017.  Some unloved funds come to the fore while some familiar names sit at the bottom to round off the year.

What’s Hot?

• Commodities have seen a bounce into the final month of 2017.  Natural Resources and Gold funds make up 6 of the 10 funds.
• Property shares put in an appearance (remember that these are equities, rather than bricks-and-mortar).
• Two UK funds make the top table, which could portend good things for the UK going into 2018.  More certainty around Brexit will help, uncertainty will be a drag.
• Emerging markets make up the last of the top 10 funds.  Plenty of opportunities for investors, which we look at in more detail in the upcoming TopFunds Guide.

What’s Not?

• Absolute return funds make up the most of the bottom list.  Certain funds also had a bad 2017, generally (see our definitive list for the year). A mixed-up sector, with some genuinely good funds but a lot that take more risk than investors might expect.  Be wary.
• Two different bond funds appear.  The M&G fund is positioned to do well should interest rates rise.  One to keep an eye on in 2018.
• A Japan fund makes up the rest of the Not Hot list.  Japan has done well but investors need to be careful which funds they choose.

FURTHER READING

• Definitive top and bottom funds for 2017
  
• Is there value in "Value" in 2018?
  
• What can go wrong?
  

 

What's Hot?

Name	Sector	Last Month Performance
First State Global Resources	Global	9.38
JPM Natural Resources	Specialist	8.09
Standard Life Investments UK Equity Unconstrained	UK All Companies	7.42
Investec Enhanced Natural Resources	Specialist	7.41
Investec Global Gold	Specialist	6.36
LF Ruffer Gold	Specialist	6.34
Aberdeen Property Share TR	Property	6.33
BlackRock Natural Resources Growth & Income	Specialist	6.08
Standard Life Investments UK Equity High Alpha	UK All Companies	5.89
Janus Henderson Emerging Markets Opportunities	Global Emerging Markets	5.87

 

What's Not?

Name	Sector	Last Month Performance
LF Odey Absolute Return	Targeted Absolute Return	-5.92
Natixis H2O MultiReturns	Targeted Absolute Return	-3.94
City Financial Absolute Equity	Targeted Absolute Return	-2.12
Thesis TM Sanditon European Select	Targeted Absolute Return	-1.87
Templeton Global Total Return Bond	Global Bonds	-1.40
Invesco Perpetual Global Targeted Returns	Targeted Absolute Return	-0.83
Artemis US Absolute Return	Targeted Absolute Return	-0.74
M&G Global Floating Rate High Yield	Sterling High Yield	-0.58
Aberdeen Japan Equity	Japan	-0.52
Kames UK Equity Absolute Return	Targeted Absolute Return	-0.51