August 2024 proved to be a dynamic month for fund managers, marked by significant market movements including a technology sector sell-off, rate adjustments, and heightened concerns over the UK economy due to the new government’s focus on budget deficits.
Amidst this turbulence, two-thirds of the 3,039 funds in our dataset (Morningstar rated and available in the UK) posted gains. Performance varied notably, with the top-performing funds showing an increase of up to 5.29%, while the worst performers recorded losses as steep as -6.58%.
Leading Performers
1. BNY Mellon Brazil Equity Fund
Morningstar Medalist Rating: Neutral
Fund Size: £19.4 million
Ongoing Charge: 1.06%
The BNY Mellon Brazil Equity Fund led with a 5.29% gain in August. However, it underperformed relative to its benchmark, the MSCI Brazil 10/40 Index, which recorded a 6.08% increase. The fund is down 10.91% year-to-date, a lesser decline compared to the average category fund’s 13.91% drop. Over the past three years, it has gained 2.53%, contrasting with a 1.75% loss in the average fund within its category.
2. HSBC Global Investment Funds – Brazil Equity
Morningstar Medalist Rating: Negative
Fund Size: £98.2 million
Ongoing Charge: 2.14%
The HSBC Brazil Equity Fund achieved a 5.07% rise in August. Despite this, it has experienced a 16.91% decline year-to-date and a 3.56% drop over the past three years.
3. WS Ruffer Gold Fund
Morningstar Medalist Rating: Gold
Fund Size: £645.5 million
Ongoing Charge: 1.25%
The WS Ruffer Gold Fund rose by 5.07% in August, surpassing the average equity precious metals fund’s 2.78% gain. The fund has shown a 26.95% increase year-to-date, outperforming the average fund in its category, which rose by 20.2%. Over the past three years, the Ruffer Gold Fund has appreciated by 9.96%, significantly higher than the 2.03% increase observed in the average fund in its category.
Challenging Performers
The month’s underperformers were notably concentrated in the China A-share equity sector, with several small- and mid-cap funds, particularly US small caps, experiencing notable declines. This shift follows a strong performance by these funds in July.
Ben Yearsley, Director at Fairview Investing, commented on the market’s volatility: “August presented a bizarre mix of extreme market movements, starting with a major decline in Japan and ending with a mostly positive month. Despite the panic early on, enduring periods of volatility often proves beneficial. With the ‘silly season’ behind us, we look ahead to a busy autumn with political and economic developments, including party conferences and the US presidential election.”
As the market adjusts, investors and fund managers will be keenly observing how upcoming events influence future performance trends.
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