After dominating last month commodities have been sliding in February. Absolute Return, including those with a European focus, also makes an unwelcome appearance.
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