Risk Disclaimer
Please note that this is a marketing communication and does not constitute investment advice or a recommendation to buy or sell investments nor should it be regarded as investment research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination. Views are held at the time of preparation.
Past performance is not a guide to future performance. Stock market and currency movements mean the value of investments and the income from them can go down as well as up and you may not get back the original amount invested.
Fund Watch uses our team’s process to highlight the past quarter’s developments in the fund world. It is fact-based and uses performance analysis which forms part of our investment process. All data is from Lipper for Investment Association (IA) sectors and is calculated in total return terms in sterling for periods ending 30 June 2019.
This quarter’s report includes the following analysis:
Risk Disclaimer
Please note that this is a marketing communication and does not constitute investment advice or a recommendation to buy or sell investments nor should it be regarded as investment research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination. Views are held at the time of preparation.
Past performance is not a guide to future performance. Stock market and currency movements mean the value of investments and the income from them can go down as well as up and you may not get back the original amount invested.
Here we conduct a review of the 12 major market sectors, filtering out only those funds that are consistently above average in each of the last three 12-month periods, and those consistently top quartile. In the 12 main sectors researched, there are currently 1,088 funds with a 3-year track record.
We live in interesting times. Bond yields continue to fall as the outlook for interest rates suggests an increasingly accommodative stance from the world’s central banks as the fortunes of global economies look to be lessening. At the same time, equities continue to rise as the cost of corporate funding remains low.
Identifying the best and worst performers of all funds in the quarter across all 37 IA sectors.
Identifying the best and worst performers in the quarter across all 37 IA sectors.
It was a poor quarter for sterling as political headlines dominated sentiment around the currency with the pathway for Brexit being muddied with a change of Prime Minister now scheduled for July, with a hard Brexit now a possibility again. The yen surged, as it tends to do in more uncertain times, though the euro also staged something of a recovery against sterling.
Can you have your cake and eat it? Here we search for funds with good risk characteristics and establish which funds offer the holy grail of low risk and high returns. For this purpose, a longer time period is required, so we look back over three years to the end of the quarter.
In summary, we believe the performance numbers are – as always – well worth crunching to find trends, provide ideas, layer knowledge on how each fund performs and to generally provoke thought.
Of course, the analysis must be taken in context, and the qualitative work must be done to allow for fully informed judgments. We hope you found this review interesting. If you have any questions, contact us.