July saw unit trusts and Oeics struggling to produce real returns in falling markets with only 7% of...
July saw unit trusts and Oeics struggling to produce real returns in falling markets with only 7% of all funds managing to do so.
Bid-to-bid figures from Lipper found that 93% of all funds across all sectors delivered negative returns during the month.
The only sectors to generate real returns were the Index Bear sector, comprising just one US fund run by Govett, which returned 3.1% while UK Gilts managed 0.23% and money market posted 0.18%. No equity sector produced a positive return for the month with eight of them falling by more than 10%. UK funds fared better than many recording an average fall of 6.9%.
Brian Harvey, head of research at Lipper, said: 'Of the equity sectors Latin America saw the biggest drop in the month, falling 14.92%, closely followed by European Smaller Companies, down 13.28%. Funds investing in smaller companies did not fair well with the UK Smaller Companies down 10.73%, North American Smaller Companies down 12.54% and European Smaller Companies sectors all featuring in the bottom five.
'The Japanese Smaller Companies funds were mid-table performers with an average return of '7.24%.'
The best-performing fund was the Pall Mall High Yield Europe Plus fund, up 5.39%.
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The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.