Willis Owen shares the best and worst-performing sectors and funds in January 2019

Posted by Adrian Lowcock in Press releases category on 01 Feb 19

Indian equity funds take all 10 spots in worst-performing list
US Smaller Companies led an equity rebound in January, having been worst performer in December
Brazilian and Latin American funds take half the best performing slots

Adrian Lowcock, Head of Personal Investing, Willis Owen says:

“What a difference a month makes. With the exception of India, most global stock markets staged a recovery in January. This was led by US Smaller Companies, in spite of the partial government shutdown, amid hopes of a US/Chinese trade deal. The expectations of the latter were tempered by a US crackdown on Chinese telecoms giant Huawei. January’s strong rebound is a good reminder of why investors should be careful chasing markets because sentiment can change suddenly, moving markets quickly. The US small cap performance was reflected in the 10 best-performing funds through biotech, with AXA Framlington Biotech and Pictet Biotech funds both appearing. The 10 best-performing funds were dominated by Latin American funds with a bias towards Brazil. The best fund was the HSBC Brazil Equity fund. Brazilian president Jair Bolsonaro has helped boost confidence among the locals whilst Latin American stocks rallied on news the US Federal Reserve would be more patient on raising rates.

The top 10 best-performing sectors

Investment Association Sector	Percentage Return
North American Smaller Companies	8.04
Property Other	7.47
Technology & Telecommunications	6.27
European Smaller Companies	5.63
China/Greater China	5.56
UK All Companies	5.42
North America	5.38
Global Emerging Markets	5.29
UK Equity Income	4.98
Global	4.6

Source: FE Analytics, performance from 31st December 2018 to 31st January 2019 in pounds sterling on a total return basis

10 best-performing funds

Funds	Percentage Return
HSBC GIF Brazil Equity	15.4
BNY Mellon US Opportunities	12.97
AXA Framlington Biotech	12.87
MFS Meridian Latin American Equity	12.87
HC Charteris Property	12.62
HSBC GIF Latin American Equity	12.53
Pictet Biotech	12.22
Templeton Latin America	12.16
Fidelity Latin America	11.85
M&G Global Emerging Markets	11.66

Source: FE Analytics, performance from 31st December 2018 to 31st January 2019 in pounds sterling on a total return basis

Bonds and defensive assets were the worst-performing sectors as investors rotated into riskier areas of equities. However, only the global bond sector posted a negative return (in sterling terms). The Mixed Assets sector rounded off the top 10 as the funds here are always likely to lag in strongly rising stock markets.

The list of worst-performing funds were all India equities, as the country suffered from a combination of factors. A strong US dollar led to weakness in the Rupee, whilst recovering oils prices did not help a country dependent on oil imports and the continued concerns of global growth weighed on the region. JPM India took the top spot for the worst-performing fund, followed closely by JGF-Jupiter India Select.

10 worst-performing sectors

Investment Association Sector	Percentage Return
Global Bonds	-0.15
UK Direct Property	0.33
UK Index Linked Gilts	0.93
Targeted Absolute Return	0.96
UK Gilts	1.27
Sterling Corporate Bond	1.57
Global Emerging Markets Bond	1.64
Sterling Strategic Bond	1.66
Mixed Investment 0-35% Shares	1.76
Mixed Investment 20-60% Shares	2.66

Source: FE Analytics, performance from 31st December 2018 to 31st January 2019 in pounds sterling on a total return basis

10 worst-performing funds

Funds	Percentage Return
JPM India	-9.06
JGF-Jupiter India Select	-9.02
Neptune India	-8.19
City Financial Absolute Equity	-8.1
Jupiter India	-7.91
Invesco India Equity	-7.03
Aberdeen Global Indian Equity	-6.94
Franklin India	-6.88
HSBC GIF Indian Equity	-6.44
BlackRock GF India	-6.12

Source: FE Analytics, performance from 31st December 2018 to 31st January 2019 in pounds sterling on a total return basis

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