What's Hot? What's Not? Emerging markets motor, Woodford wilts [Fund Edition]

You had to take risks to make money in the last month – but you did well if you did (from emerging markets, commodities and smaller companies.  In contrast, some very sensible looking funds, and the big daddy of fund managers, were disappointing (bonds, Woodford, gold, absolute return).

Looing first at the hot funds and sectors:

• Emerging markets is one of the star sectors in 2017 and continued to motor in July.  
• Commodity-linked funds have struggled this year, though showed signs of life in recent weeks.  
• Last but not least the Old Mutual UK Smaller Companies fund has a showing – it’s been a great year for this fund, continuing to undermine those inclined to believe the post-Brexit world is a cliff edge for the UK.

Turning to the laggards, some cautious investors will be sorely disappointed:

• Two Absolute Return again feature amongst the laggards.
• Ruffer Gold fund shows that not all commodities glistened this month.  
• Those who think that investor salvation will come through infrastructure investment have received a rude shock as VT UK Infrastructure slumped….
• …As did other usually more reliable stalwarts – index-linked gilts, short dated bonds, and “blue chip” equities.
• And Neil Woodford has capped a poor year with another underwhelming month.

• Robots and the Middling Revolution: Part II
• Are commodities due a bounce?
• Boom Bubble Bust: Part I

Table 1: What's Hot?

Table 2: What's Not?