Hargreaves Lansdown: Japan funds dominate top performers in June

Japan funds dominate the top ten performing funds in June, according to Hargreaves Lansdown, with the IMA Japan being the best performing major equity market.

Nine of June’s top ten performing funds invest in Japan, with the £5.5m MFS Meridian Funds Japan Equity, £27.6m Baring Japan Growth, £477m Fidelity Inst Japan, £189.7m Hermes Japan Equity and £531.9m Royal London Japan Tracker funds taking the top five spots.

The exception was the £2.3m IM Argonaut European Absolute Return fund, in ninth place.

Japan has been the only market to perform positively on the S&P Global Broad Market Index in June, gaining 1.42 per cent in the month.

Hargreaves Lansdown senior investment manager Adrian Lowcock says: “The IMA Japan was the best performing major equity market as much of the declines in that market occurred in May. Japanese funds took nine of the top 10 performing funds and posted positive returns of up to 5.6 per cent as active managers proved their worth.”

So far, June has been a challenging month for investors after the Federal Reservee chairman Ben Bernanke announced QE may come be slowed if the US economy continues to strengthen.

Lowcock adds: “Once again we are reminded when America sneezes the rest of the world catches a cold.”

The IMA North American sector fell 3.3 per cent in Jun, while the IMA Global Emerging Markets and IMA Asia Pacific ex Japan sectors ended the month down 9.35 per cent and 8.27 per cent respectively.

Lowcock identifies: “For the short term at least, cash has proved to be king with the IMA Money Market and IMA Short Term Money Market sectors protecting investors’ capital.

”Defensive assets were the order of the day with IMA Targeted Absolute Returns, IMA UK Gilt and IMA Protected all featuring in the top 10 performing sectors.”

Top performing IMA sectors June 2013

Name % Growth Rank

IMA Money Market

0.00

1

IMA Short Term Money Market

-0.01

2

IMA Japan

-1.02

3

IMA Targeted Absolute Return

-1.09

4

IMA UK Smaller Companies

-2.23

5

IMA North American Smaller Companies

-2.69

6

IMA Property

-2.84

7

IMA UK Gilt

-3.06

8

IMA Protected

-3.09

9

IMA £ High Yield

-3.23

10

Source: Lipper, 1 June 2013 to 30 June 2013