What’s Hot? What’s Not? UK funds push higher, Commodities sink further [Fund Edition]

The picture clearer for this month’s What’s Hot? What’s Not? after a pretty eclectic mix in the last edition.

The top table is entirely UK-focussed with funds ranging from income and medium to smaller company funds.  The bottom table is dominated by gold and commodities.

What’s Hot?

• Only one UK fund made it into the top table last month.  This month all the top funds are either large, medium or smaller company UK-focussed funds.
• These funds have all outperfomed the FTSE 100 (-0.87% for the period)...
• ...showing there is great potential out there for discerning investors.
• UK smaller companies are prominent, making up 4/10 funds.
• Medium and larger company-focussed funds also feature… 
• …while a property share fund makes up the top 10.  Building companies’ stock has performed well (investors are expecting a strong mandate for Theresa May in the upcoming general election).

What’s Not?

• Gold and Energy funds make up the majority of the bottom table.  Emmanuel Macron’s success in the first round of the French Presidential election left investors with an appetite for riskier investments…
• …but a Le Pen victory in the second round, while unlikely, would see this quickly reverse.
• The US made up most of the bottom funds last month.  Only one specifically US fund shows this time round.
• We’ve noted before that the US is over-valued.  While the market could still go higher we’re now in the 93rd month of US expansion…and history suggests that we are due a correction.
• Japanese Smaller Companies, which have been quiet of late, makes up the rest of the funds in the bottom table…  
• …as one of our Trades of the Decade, periods of weakness may present an opportunity for long-term investors.

FURTHER READING

• Targeted Absolute Return: All is not as it seems
• How to select the best ISA funds
• What is a cautious fund? Which are the best?