Willis Owen reveals the best and worst sectors and funds in July 2020
- Gold and Precious metal funds make up 8 out 10 top performing funds
- Japanese equities was the worst performing sector
- Energy and Latin American funds are worst performing due to crisis
Adrian Lowcock, Head of Personal Investing, Willis Owen says:
“The recovery in global stock markets slowed as the initial rebound in the global economy, particularly the US, began to stall and early gains in global stock markets in July petered out.
“Gold, which has been performing well since the crisis began, made further gains due to a combination of concerns over further breakouts of COVID-19, weaker US dollar and expectations that the government and central bank stimulus will lead to inflation.
“Chinese shares also performed well as the country had successfully contained the virus by being the first to go into, and come out of lockdown. The economic recovery in China has been reassuring for investors and helped drive the markets higher, helped by its technology exposure.
“The technology sector has been leading the stock market rally since March and continued to eke out some gains as leading US technology companies posted some strong results causing share prices to rally at the end of the month.
“The DMS Charteris Gold & Precious Metals led MF Junior gold as the top performing fund in July. Its exposure to gold equities provided the place to be in July, with smaller gold companies having the potential to offer an even greater leveraged exposure to the gold price.
“The VT Oxeye Hedged Income Option and GAM Star Alpha Technology were the only two funds in the top 10 that didn’t primarily invest in precious metals.
10 best-performing sectors
|
Investment Association Sector |
Percentage |
|
China/Greater China |
3 |
|
Sterling High Yield |
2.8 |
|
European Smaller Companies |
2.13 |
|
Global Emerging Markets |
2.07 |
|
Sterling Corporate Bond |
1.7 |
|
Sterling Strategic Bond |
1.59 |
|
Technology & Telecommunications |
1.52 |
|
Asia Pacific Excluding Japan |
1.08 |
|
UK Smaller Companies |
0.84 |
|
Specialist |
0.75 |
Source: FE Analytics, performance from 30th June to 31st July 2020 in pounds sterling on a total return basis
10 best-performing funds
|
Funds |
Percentage |
|
DMS Charteris Gold & Precious Metals |
19.64 |
|
MFM Junior Gold |
18.09 |
|
Merian Gold And Silver |
17.9 |
|
ES Gold and Precious Metals |
17.17 |
|
Ninety One Global Gold |
12.21 |
|
LF Ruffer Gold |
11.6 |
|
The VT Oxeye Hedged Income Option |
10.67 |
|
BlackRock Gold & General |
10.56 |
|
Quilter Investors Precious Metals Equity |
10.52 |
|
GAM Star Alpha Technology |
9.94 |
Source: FE Analytics, performance from 30th June to 31st July 2020 in pounds sterling on a total return basis
“Japanese sectors posted the biggest losses as Japanese Yen tumbled against the pound towards the end of the month, tipping the monthly performance of the Topix into negative territory for British investors.
“Japan has weathered the COVID-19 crisis fairly well. However, the economy is a global exporter so is significantly impacted by any changes in the outlook for the global economy.
“The UK market also continued to suffer as new lockdowns and changes in travel rules for Spain hit the domestic market. The UK market has a bias towards more value orientated areas of the market, and results from banks including Lloyds, and Oil majors such as Royal Dutch Shell showed the extent of the financial damage the crisis and subsequent lockdown has had on the finances of companies in these sectors. Fears of a second wave and putting the brake on easing lockdown measures hit value stocks particularly hard.”
Man GLG Japan Core Alpha was the worst performing Japanese fund as its large cap value style continued to suffer.
10 worst-performing sectors
|
Investment Association Sector |
Percentage |
|
Japanese Smaller Companies |
-7.6 |
|
Japan |
-6.14 |
|
UK Equity Income |
-2.93 |
|
UK All Companies |
-2.21 |
|
Global EM Bonds Local Currency |
-2.19 |
|
UK Equity & Bond Income |
-1.75 |
|
Global EM Bonds Hard Currency |
-1.7 |
|
Asia Pacific Including Japan |
-1.36 |
|
Global EM Bonds Blended |
-1.23 |
|
Global Equity Income |
-0.83 |
Source: FE Analytics, performance from 30th June to 31st July 2020 in pounds sterling on a total return basis
10 worst-performing funds
|
Funds |
Percentage |
|
LF Mulberry |
-25.45 |
|
Man GLG Japan Core Alpha |
-12.58 |
|
GVQ UK Focus |
-10.78 |
|
Polar Capital Japan Value |
-10.49 |
|
LF Morant Wright Japan |
-10.42 |
|
LF Morant Wright Nippon Yield |
-10.39 |
|
SJP Japan |
-10.2 |
|
GVQ Opportunities |
-10.06 |
|
Vanguard UK Inflation-Linked Gilt Index |
-9.81 |
|
AB Japan Strategic Value Portfolio |
-9.8 |
Source: FE Analytics, performance from 30th June to 31st July 2020 in pounds sterling on a total return basis
-Ends-
Enquiries
Adrian Lowcock, Chris Tuite
Head of personal investing Director & Head of Consumer Finance
Willis Owen MRM London
07849 846387 020 3326 9925
Adrian.lowcock@willisowen.co.uk 07471350180
Willisowen@mrm-london.con
Notes to Editors
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