November’s top and bottom performing funds

Rob Morgan rounds up the notable fund sector trends in November as investors were provided with a little respite from falling markets.

This content is more than 6 months old now, please visit the news area of this site for more recent content

  1. Rob Morgan

Following on from ‘Red October’ investors received a respite in November. Initially, there was uncertainty as US midterm elections took centre stage but these proceeded largely as polls predicted, with the Democrats taking control of the House of Representatives and the Republicans strengthening their position in the Senate. Overall, investors seemed to be heartened by the prospect of relatively little political action for the foreseeable future, as well as some ameliorative noises from President Trump who indicated he was willing to work with a Democratic House on issues such as infrastructure and healthcare costs.

Towards the end of the month recovery was further assisted by comments from US Federal Reserve chairman Jay Powell. Investors interpreted Powell’s comment that interest rates were “just below neutral” as an indication that future rate rises might not come as fast as many were expecting.

Asian and Chinese markets in particular returned to strength following a dismal run over the previous few months. Amid the ongoing trade war between the US and China, hopes grew that a deal could be reached between the two countries at the G20 summit. Chinese authorities have also loosened policy to ensure sufficient credit is available in key areas of the economy, and cut tariffs on non-US imports to reduce costs for consumers and companies.

The oil price slumped by a fifth as worries about slowing demand took hold. Investors believe there’s a supply glut in the offing as inventories rose and the US granted waivers from Iran sanctions to some of its major customers. Most commodities have fallen alongside, and resource-rich Latin America was another notably weak area. While the falling oil price is bad for some, notably the energy sector, it gives a spending boost to households, most businesses and many countries. That could help many parts of the world that need a bit of stimulus, such as India and China.

The pound was volatile on continuing Brexit uncertainty. The UK government and the European Union finally agreed a withdrawal deal which will be voted on by parliament on December 11. However, there is a good chance the deal will not be voted through. There are a number of issues MPs do not like, particularly the Irish backstop part of the agreement. Weakness in UK-facing companies such as banks and house builders persisted.

European equities, however, were the main laggards as Eurozone consumer confidence hit its lowest level since March 2017. It was announced that Germany's industrial production rose for a second straight month in September, defying expectations for a modest decline. However, this followed a series of negative data releases and investors were not convinced.

Tensions between the EU and Italy surrounding the Italian budget continued to cast a shadow. Rome says it will stick to its high-spending budget plans, setting up a potential stand-off with the European Union over its deficit. Some kind of accommodation or fudge to avoid such a development is thought likely. Otherwise it risks higher bond yields that would jeopardise Italy’s banking sector and have knock-on consequences across the continent and beyond.

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 November 2018 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 November 2018: 31/10/2018 to 30/11/2018. Onshore and retail open-ended funds only.

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

More from author

  1. Rob Morgan

    Emerging market debt: a high yield but risky option

    Fund Research - 4th Dec 2018 10:46am

    With interest rates low some investors are exploring new territory in their search fo...

  2. Rob Morgan

    A dividend opportunity from Brexit woes?

    Fund Research - 4th Dec 2018 10:46am

    Amid political uncertainty and waning sentiment towards UK assets, this investment tr...

  3. Rob Morgan

    November’s top and bottom performing funds

    Fund Research - 4th Dec 2018 10:46am

    Rob Morgan rounds up the notable fund sector trends in November as investors were pro...

Most read articles

  1. November’s top and bottom performing funds

    Emerging market debt: a high yield but risky option

    Fund Research - 4th Dec 2018 10:46am

    With interest rates low some investors are exploring new territory in their search fo...

  2. November’s top and bottom performing funds

    A dividend opportunity from Brexit woes?

    Fund Research - 4th Dec 2018 10:46am

    Amid political uncertainty and waning sentiment towards UK assets, this investment tr...

  3. November’s top and bottom performing funds

    November’s top and bottom performing funds

    Fund Research - 4th Dec 2018 10:46am

    Rob Morgan rounds up the notable fund sector trends in November as investors were pro...