• UK-focused funds and trusts have seen widespread gains since the General Election
• Smaller companies dominate the best performers
• Top open-ended fund – VT Teviot UK Smaller Companies
• Top investment trust – JP Morgan Smaller Companies
• Investment trusts have outperformed open-ended funds on average
|
Sector |
Performance 12/12/19 – 10/01/20 |
|
Investment Trusts – UK All Companies |
8.2% |
|
Investment Trusts – UK Smaller Companies |
8.0% |
|
Funds – UK Smaller Companies |
7.8% |
|
Investment Trusts – UK Equity Income |
5.1% |
|
Funds – UK All Companies |
5.1% |
|
Funds – UK Equity Income |
5.1% |
Top 10 UK-focused open ended funds since the general election
|
Fund |
Performance 12/12/19 - 10/01/20 |
|
VT Teviot UK Smaller Companies |
11.34% |
|
SVM UK Opportunities |
11.05% |
|
Liontrust UK Micro Cap |
10.38% |
|
Schroder UK Smaller Companies |
10.29% |
|
TM Cavendish AIM |
10.05% |
|
Investec UK Smaller Companies |
9.85% |
|
Threadneedle UK Smaller Companies |
9.81% |
|
Liontrust UK Smaller Companies |
9.62% |
|
Premier UK Growth |
9.38% |
|
Schroder Institutional UK Smaller Companies |
9.17% |
Top 10 UK-focused Investment Trusts since the general election
|
Investment trust |
Performance 12/12/19 - 10/01/20 |
|
JPMorgan Smaller Companies |
15.74% |
|
SVM UK Emerging Fund |
14.05% |
|
Schroder UK Mid Cap |
13.68% |
|
Downing Strategic Micro-Cap |
12.09% |
|
Odyssean Investment Trust |
11.76% |
|
Henderson Opportunities Trust |
11.73% |
|
Henderson Smaller Companies |
10.73% |
|
Standard Life UK Smaller Companies Trust |
10.52% |
|
Lowland Investment Company |
10.42% |
|
Aberdeen Smaller Companies Income Trust |
9.49% |
Data looks at the Investment Association and the Association of Investment Companies’ UK Equity Income, UK All Companies and UK Smaller Companies sectors for the period from market close on 12/12/19 to market close on 10/01/20. Source FE.
Laura Suter, personal finance analyst at AJ Bell, comments:
“Sentiment towards UK stocks has dramatically improved since the December general election, as evidenced by widespread gains among UK focused funds and investment trusts. The large majority gained by the Conservatives fuelled a Boris Bounce as investors hurried back into domestically focused companies that had been out of favour for so long.
“This can be seen clearly in the dominance of smaller company funds at the top of the performance tables. Interestingly the best returns have come from investment trusts with JP Morgan Smaller Companies returning almost 16%. UK-focused investment trusts had been on stubbornly wide discounts to their net asset value in the lead-up to the election, but benefited from a boost to share prices in the Boris rally as investors bid up UK stocks.
“The managers of JPMorgan Smaller Companies, Georgina Brittain and Katen Patel, seek to own companies with a competitive edge, frequently operating in niche growth markets, which rather than being dependent on GDP are forging their own growth. Portfolio holdings include fantasy miniatures maker Games Workshop, specialist media group Future and scientific instruments maker Judges Scientific.
“Hot on its heels since the election with a 14% gain is the SVM UK Emerging, a growth companies fund managed by Margaret Lawson and Colin McLean with a bias towards consumer services, financials and industrials.
“Another notable gainer since Boris Johnson bagged his comfortable working majority is Schroder UK Mid Cap, with sentiment towards the FTSE 250 index turning positive as the index is perceived as a proxy for the UK’s domestic economy. Managed by Andrew Brough and Jean Roche, this trust aims to beat the performance of the FTSE 250 and is invested in the likes of alternative asset manager Intermediate Capital, home repairs company HomeServe and homewares brand Dunelm.
“In terms of funds, VT Teviot UK Smaller Companies took the top spot. Managed by Scotland-based Valu-Trac, the fund focuses on the smallest 10% of companies in the UK market, meaning it benefitted from the boost to small UK firms. Of the top 10 performing funds during the period eight focused specifically on smaller companies, including Liontrust UK Micro Cap, Schroder UK Smaller Companies and Investec UK Smaller Companies. Even UK Equity Income funds saw a rally, particularly those that are value-focused and have more allocated to FTSE 250 firms.”
