Over the first six months of 2011, all variations of European funds have fared well. European including UK funds were the fourth best performing peer group so far this year while European Smaller Companies ranks fifth out of the 34 IMA sectors. Despite this performance, in April the European sector remained a lacklustre draw for investors with the Europe including UK sector the worst selling area of the market.
UK Smaller Companies is the only other equity group to beat bonds over the first half of the year. Ranked second of the IMA sectors, UK small cap funds gained an average of 4.73%, followed by index-linked gilts with a return of 4.71%. The High Yield, Corporate and Strategic bond sectors rank sixth, seventh and eighth respectively.
Just eight of the 34 IMA sectors featured a negative bid-to-bid return in the six-month period and among them are some of the most popular areas of last year. Global Emerging Market funds recorded an average loss of 4.14%, while China portfolios fell by 4.65%. Japan, Japanese Smaller Companies, Asia Pacific ex Japan and including Japan, Active Managed and Specialist funds also fell over the half-year period, FE stats reveal.
From a portfolio specific point of view, HC FCM Salamanca Global Property was the highest gaining fund over the six months, returning 30.56%. According to FE’s data Cazenove UK Smaller Companies is ranked second best across all the fund universes with a return of just under 20%. At the opposite end of performance, HC Residential Property has fared the worst so far this year, dropping more than 42%, while SF t1ps Small Companies Gold was the second worst performer, returning -22.42%.
