June’s top and bottom performing funds

A round up of the notable fund sector trends in June.

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  1. Rob Morgan

Share markets across the globe were mostly in a buoyant mood in June. Indeed, the S&P 500 had its best first half of the year since 1997. Equities have been boosted by hopes that the US Federal Reserve will cut interest rates later this year, and a more conciliatory tone from Donald Trump on trade helped even though a US confrontation with Iran was cause for some alarm.

In the US, the Federal Open Markets Committee acknowledged increasing “uncertainties” in the economic outlook. The yield on the 10-year US Treasury fell below 2% for the first time since late 2016. In the Eurozone, 10-year government bond yields also fell to record lows (meaning prices rose) following ECB head Mario Draghi’s comments that “additional stimulus will be required” to revive the Eurozone economy if conditions deteriorate in the next few months.  As a result, the value of negative yielding debt globally reached an all-time high of $12.5 trillion.

A surprise change in tone from Donald Trump at the G20 meeting in Japan helped boost sentiment around trade. In a move that could help the ongoing trade tension between Washington and Beijing, President Trump and China's Xi Jinping agreed to restart trade talks, averting an escalation feared by financial markets, businesses and farmers. Existing US tariffs will remain in place against Chinese imports while negotiations continue, but additional tariffs threatened on other Chinese goods will not go forward for the "time being".

China-focused funds performed well, recapturing ground lost in May with a strong showing from US and European markets too. In the UK political uncertainty continued to beset domestically-focused companies. The future shape of the UK’s relationship with the European Union (EU) still remains unclear. But despite the gloom in the small and mid-cap market, the more internationally-diverse FTSE 100 had a good month.

The combination of increasing geopolitical tensions and a more accommodative monetary policy stance signalled by central banks was a powerful one for gold. The bullion price soared to its highest level since 2013 and many of the top performing funds during the month were the gold mining specialists.

Although investors should be aware past performance is not a reliable indicator of future results, here are the top and bottom ten Investment Association (IA) funds and sectors for June 2019 in full:

 

Top 10 funds:

Bottom 10 funds:

Top 10 sectors:

Bottom 10 sectors:

Past performance is not a reliable indicator of future returns. Figures are shown on a % total return basis, bid to bid price with net income reinvested; Source: FE Analytics, data for June 2019: 31/05/2019 to 30/06/2019. Onshore and retail open-ended funds only.

 

Past performance is not a reliable guide to future returns. This website is not personal advice based on your circumstances. No news or research item is a personal recommendation to deal. Investment decisions in fund and other collective investments should only be made after reading the Key Investor Information Document or Key Information Document, Supplementary Information Document and Prospectus. If you are unsure of the suitability of your investment please seek professional advice.

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