Interactive Investor

Nine in 10 of best-performing funds in August invest in this region

1st September 2021 14:08

Tom Bailey from interactive investor

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This country’s index hit a record high in August, which in turn boosted returns for active funds. 

Stock markets around the world generally performed well in August, with most major indices edging higher. This fed into the performance of open-ended equity funds, with many posting positive returns for the month.

However, in terms of the best performing, one region dominated: India. Of the 10 best-performing funds in August, nine had an exclusive focus on India. The best performing was Aberdeen Standard Indian Equity, with a return of 11.2%. 

Indian equities saw strong returns in August. Indeed, it was the best month so far this year for India’s S&P BSE SENSEX, which finished at an all-time record high.

Ben Yearsley, director of Shore Financial Planning, notes: “There doesn’t seem to be any specific catalyst for India’s strength apart from a resilient economy in the face of the Delta Covid variant (which now seems under control). Inflation is under control there and by most accounts the monsoon season has been good as well.”

While India dominated the best-performing list, six of the 10 worst-performing funds had an explicit focus on gold and other precious metals. MFM Junior Gold was the third worst-performing fund, with a loss of 9.1%. 

Yearsley notes that the reason behind this poor performance is not straightforward. Despite the poor performance of funds with heavy gold exposure, the price of gold did not do very much in August.

He notes: “As the gold price didn’t move in August, there was no real catalyst for the negativity. There was an element of stocks trading ex-dividend (with some very chunky payouts), a slightly stronger dollar, and also the pick-up in bond yields, but overall, there was no big news to affect gold shares.”

The two worst performers were 7IM Income Portfolio and 7IM Absolute Return Portfolio, both of which remain suspended due to liquidity concerns.

Top 10 fund performers in August

Fund

Return (%)

Aberdeen Standard Indian Equity

11.17

SJP Emerging Markets Equity

10.73

Invesco India Equity

10.72

JPM India

10.51

UTI India Dynamic Equity

10.43

Schroder India Equity

10.25

Fidelity India Focus

10.04

Matthews India

9.98

Schroder ISF Indian Equity

9.81

Stewart Investors Indian Subcontinent

9.74

Source: FE Analytics. Data from 31 July 2021 to 31 August 2021.

 

Bottom 10 performing funds in August

Fund

Return (%)

7IM Income Portfolio

-11.39

7IM Absolute Return Portfolio

-9.29

MFM Junior Gold

-9.09

Sanlam Gold & Resources

-6.41

Charteris Gold and Precious Metals

-6.35

Jupiter Gold & Silver

-5.43

Baker Steel Gold & Precious Metals

-5.42

Blackrock GF World Mining

-5.17

Ninety One Global Gold

-4.93

Quilter Precious Metals Equity

-4.92

 

Source: FE Analytics. Data from 31 July 2021 to 31 August 2021.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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