Funds exposed to small and mid cap companies, as well as financial stocks, have been worst hit in the month following the UK’s vote to leave the European Union, an analysis of the UK All Companies, UK Equity Income and UK Smaller Companies sectors shows.
The worst performing fund, the JP Morgan Mid Cap Investment Trust, returned negative 9.2 per cent since the market closed on 23 June and is followed by Blackrock Throgmorton, returning negative 8.1 per cent, and Henderson Opportunities, returning negative 8 per cent.
The best performing fund over the period, Manchester & London Investment Trust, returned 15.8 per cent.
Newton UK Income and Trade Union Unit Trust also produced solid performances over period, both returning 8.9 per cent.
Since the UK voted in favour of Brexit, the FTSE 100 is up 5.7 per cent while the more domestically orientated FTSE 250 is down 1.7 per cent. Sterling is down 12 per cent versus the dollar over the same period.
Wealth Club investment director Ben Yearsley says funds and trusts concentrating on small and medium sized companies dominate the worst performers, while those with large exposure to financial stocks were also hard hit.
“On the positive side, funds and trusts buying into large caps have done well, especially those with large weightings in dollar earners such oil, pharma and tobacco.”
Yearsley says Evenlode Income and Dunedin Income & Growth were other notable performers, returning 8.8 per cent and 7.6 per cent respectively.
“The strength of the market rally since has surprised many. The weakness in sterling has a lot to do with it as there are many dollar earners and dividend payers in the FTSE that will benefit,” says Yearsley.
Top performing funds and trusts
- Manchester & London IT 15.76%
- Newton UK Income 8.93%
- Trade Union Unit Trust 8.90%
- CF Purisma UK Total Return 8.78%
- Evenlode Income 8.75%
- CFIC Oriel UK 8.40%
- Scottish Widows UK Sel Gro 7.65%
- VT The Beagle 7.64%
- Dunedin Income & Growth 7.62%
- Scottish Widows UK Tracker 7.51%
Worst performing funds and trusts
- JP Morgan Mid Cap IT -9.18%
- Blackrock Throgmorton -8.13%
- Henderson Opportunities -7.96%
- Miton UK Value Opportunities -7.87%
- Elite Webb Capital Small Cos -7.83%
- Aberforth Smaller Cos -7.72%
- Jupiter UK Growth -7.66%
- Mercantile IT -7.48%
- Schroder UK Mid Cap -7.42%
- Blackrock Smaller Companies -7.41%