The July Lipper fund performance stats showed a 1.49% average value reduction, due mainly to declines in the United States and the property sector.
Skandia Global Property Securities fell 8.6% for the month, SWIP European Real Estate dropped 7.96%; while Gartmore and F&C’s US Smaller Companies funds lost 7.67% and 7.5% respectively.
On the positive side, Chinese funds bucked the trend and recorded strong growth.
Melchior Asian Opportunities was the best performer, with 11.09% growth, closely followed by Threadneedle China Opportunity Retail and Invesco Perpetual Hong Kong & China – with over 10% each.
Marsico Capital vice president of marketing and client services John Benson says despite the US drop, it is far from crisis time.
“The market overall was down 3%, so basically we must do whatever we can to preserve capital,” he says.
He cites the current problems with the sub-prime and credit markets as the main contributing factors.
“I think the market needed this kind of period to sort itself out,” he says.
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