• Seven of the top 10 performing funds in Q1 focus on China or US
• Europe and absolute return funds languish at the bottom of the table
Ryan Hughes, head of active portfolios at investment platform AJ Bell, comments:
“The top performing funds for the first three months of this year were dominated by American funds and China-focused equity funds. Almost half of the top 10 performers were China focused funds following a 27% advance in the SSE Composite Index in the first quarter. The same trend was seen in investment trusts, with JP Morgan Chinese Investment Trust and Fidelity China Special Situations up around 25%.
“Funds such as the JP Morgan US Small Cap Growth and Brown Advisory US Smaller Companies fund highlight the stellar performance of American markets in the first three months of the year, with the S&P 500 up 14.4% overall.
“All major equity markets delivered a positive return in the first quarter, with the FTSE 250 up 9.9% and the FTSE 100 up 9.2%. With the Federal Reserve and other central banks essentially saying that interest rate rises are on hold, this gave investors’ confidence to pile into risk assets in the belief that central banks will provide a back stop to markets. Whether this is right or indeed healthy while global growth slows is another matter.
“Those posting disappointing returns include the Garraway Absolute Equity fund, which was previously the City Financial Absolute Equity fund but was taken over when City Financial went into administration. The fund has reopened after temporarily suspending dealing and is still subject to a dilution levy for those wanting to get out.
“European funds also had a prominent showing in the bottom 10 performers, with a slowing European economy and fears about the impact of Brexit hitting those markets. Absolute Return funds continued to have a torrid run, occupying 8 of the bottom 50 funds, and three of the bottom 10 performers. These funds aim to deliver a smoother ride than many funds, but some are clearly not delivering.”
Funds
Top performers:
|
Name |
Q1 2019 performance |
|
GAM Star China Equity |
24.0% |
|
TM Cavendish AIM |
21.5% |
|
Smith & Williamson Artificial Intelligence |
20.7% |
|
JPM US Small Cap Growth |
20.6% |
|
Matthews China |
20.2% |
|
JPM Greater China TR |
19.6% |
|
Brown Advisory US Smaller Companies |
19.2% |
|
Aubrey Global Conviction |
19.0% |
|
GS China Opportunity Equity Portfolio |
18.7% |
|
Brown Advisory US Mid-Cap Growth |
18.5% |
|
Source: FE/AJ Bell. Performance on a total return basis, in GBP |
|
Bottom performers:
|
Name |
Q1 2019 performance |
|
VT Garraway Absolute Equity |
-25.5% |
|
The VT Oxeye Hedged Income Option |
-19.0% |
|
BMO Global Equity Market Neutral V10 |
-12.9% |
|
Aviva Inv European Property |
-5.7% |
|
LF Miton UK Smaller Companies |
-5.3% |
|
Thesis TM Sanditon European Select |
-5.2% |
|
Carmignac Portfolio Long-Short European Equities |
-4.9% |
|
Jupiter Absolute Return |
-4.6% |
|
Thesis TM Sanditon UK Select |
-3.9% |
|
WAY Absolute Return Portfolio |
-3.9% |
|
Source: FE/AJ Bell. Performance on a total return basis, in GBP |
|
Investment trusts
Top performers:
|
Name |
Q1 2019 performance |
|
Leaf Clean Energy Company |
62.2% |
|
3i Group |
27.3% |
|
Allianz Technology Trust |
25.4% |
|
JP Morgan Chinese IT |
25.0% |
|
Fidelity China Special Situations |
24.6% |
|
Workspace Group |
24.2% |
|
Baillie Gifford Edinburgh Worldwide IT |
23.4% |
|
Starvest |
23.3% |
|
Schroder UK Mid Cap |
22.8% |
|
Lindsell Train IT |
21.9% |
|
Source: FE/AJ Bell. Performance on a total return basis, in GBP |
|
Bottom performers:
|
Name |
Q1 2019 performance |
|
Partners Group Global Opportunities |
-58.9% |
|
Vinaland Limited |
-57.8% |
|
Bloomsbury Infrastructure India |
-53.6% |
|
Tiger Resource |
-46.7% |
|
PME African Infrastructure Opportunities |
-41.4% |
|
Blue Star Capital |
-38.0% |
|
GLI Finance Limited |
-37.7% |
|
LXB Retail Properties |
-25.4% |
|
RDP Global Resources Investment Trust |
-23.1% |
|
Kingswood Holdings |
-20% |
|
Source: FE/AJ Bell. Performance on a total return basis, in GBP |
|