November’s top and bottom performing funds

A round up of the prominent fund sector trends in November, a positive month for most investments.

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  1. Rob Morgan

Optimism about trade talks between the US and China returned in November, while the US economy continued to show strength. This helped the S&P 500, Nasdaq Composite and Dow Jones Industrial Average closed at new record highs towards the end of November.

The fragile entente between Washington and Beijing was threatened, though, as President Trump signed a bill into law that supported the pro-democracy protesters in Hong Kong. The Human Rights and Democracy Act mandates an annual review to check if Hong Kong has enough autonomy to justify its special status with the US. Beijing has expressed serious displeasure at the move, which it regards as interference in its internal affairs. Mr Trump's move comes at a sensitive point in the superpowers' talks to find a solution to their trade war, with both sides said to be close to a ‘phase one’ agreement.

There were further complications for China after Hong Kong’s democrats scored a landslide majority in district council elections, beating Beijing-backed candidates by nine-to-one. Chinese and broader Asian funds generally lagged over the month, and areas sensitive to global trade such as commodities and Latin America were weak. Despite the disruption, Chinese e-commerce company Alibaba raised US$11 billion in its initial Hong Kong market listing and shares in the e-commerce giant surged over 6% on the opening day.

US markets, meanwhile, made decent progress, notably driven by technology stocks. Biotech and healthcare more generally also saw gains with investors’ appetite for higher growth areas renewed. Most central banks globally are now in an ‘easing’ cycle of reducing interest rates, which is a supportive environment for equities. The US Federal Reserve has cut interest rates three times this year, amid concerns about slowing global growth and trade wars.

Closer to home, the general election on 12 December continued to dominate headlines, with sterling benefitting from a well-regarded poll that put the Conservatives on course for a solid win. That led to a slight rise in the pound and a pickup in UK domestic-orientated assets. Many UK smaller and medium-sized company funds, which for several months have struggled to make headway, were beneficiaries. Election-related volatility looks likely to continue, and for a broader view on how it might impact markets as events unfold click here.

While there were gains for equities, it was a subdued month for bonds. Other perceived ‘safe havens’ such as gold also fared less well.

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 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 November 2019: 31/10/2019 to 30/11/2019. 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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