What’s Hot? What’s Not? US drives higher while commodities crumble?

Wed 01 Mar 2017

By Brian Dennehy

Access Level | public

What's Hot What's Not

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The “Hot” table is an eclectic mix with Healthcare and Biotech finally seeing a bounce accompanied by smaller companies and technology – the common feature is a US bias.  

What’s Hot?

  • US and European smaller company funds have done well this month, with the European version taking the top spot.
  • Focussed funds are prominent, with Technology, Healthcare and Biotech all doing well in February, all funds with large exposures in the US…
  • …but “buyer beware”; the US rally is very long in the tooth.
  • Latin America is the final feature; after suffering a selloff a bounce was due, and Brazil remains cheap.

What’s Not?

  • Absolute Return funds again feature, with 3 funds showing in the bottom table.  Although they target returns over 3 or 5 years this type of poor performance is disappointing.
  • Gold, energy and natural resources are the main story.  We may be seeing some profits being taken in gold…
  • …while natural resources funds may be taking a rest from the longer up-trend.  This could be an opportunity to buy (US wobbles allowing).
  • The 2016 star European fund from Neptune is the final fund.  It will be interesting to see how the manager finds his feet in the election-ridden months just ahead.  
  • A benign outcome for European funds might see money which has been sitting on the side-lines flooding back in but investors should stay wary of swirling political risk.

FURTHER READING

 

What's Hot

Name

 

Sector

Last Month Performance

F&C

 European Small Cap ex UK

 European Smaller Cos.

11.57

AXA

 Framlington Global Technology

 Technology & Telecoms

7.87

JPM

 US Smaller Companies

 North American Smaller Cos.

7.35

AXA

 Framlington Biotech

 Specialist

7.27

L&G

 Global Health & Pharma Idx Trust

 Global

7.24

Schroder

 Global Healthcare

 Global

6.96

Aberdeen

 Latin American Equity

 Specialist

6.84

7IM

 US Equity Value

 North America

6.75

BlackRock

 US Dynamic

 North America

6.69

F&C

 North American

 North America

6.68

 

What's Not

Name

 

Sector

Last Month Performance

CF Odey

 Absolute Return

 Targeted Absolute Return

-3.77

Smith & Williamson

 Global Gold & Resources

 Specialist

-3.3

Investec

 Global Gold

 Specialist

-3.17

Investec

 Enhanced Natural Resources

 Specialist

-2.69

First State

 Global Resources

 Global

-2.51

JPM

 Natural Resources

 Specialist

-2.06

Schroder

 European Equity Abs Return

 Targeted Abs Return

-1.99

Neptune

 European Opportunities

 Europe Ex UK

-1.95

Argonaut

 FP Argonaut Abs Return

 Targeted Abs Return

-1.91

Investec

 Global Energy

 Specialist

-1.9

 

 

Performance data: 1/2/17-28/2/17

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What's Hot What's Not

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