Five worst performing funds in April
By Kristen McGachey, 3 May 18
Mark Carney cast doubt on a May rate rise, UK GDP grew at its most sluggish pace in over five years, US treasuries hit 3% and Russia faced US sanctions. So which funds had the toughest time navigating April? Our sister publication Portfolio Adviser examines performance figures from FE.
City Financial’s £280m long/short equity vehicle finished out the month at the bottom of the heap, despite being the third strongest performer last quarter.
While April saw the UK equity sectors, which have been among the weakest performers this year, rise to the top, the IA Targeted Absolute Return sector was in the bottom 10 sectors.
Against the top two IA sectors, UK Equity Income and UK All Companies, which returned 6.25% and 6.21% to investors, the Targeted Absolute Return sector managed returns of 0.45%.
The City Financial Absolute Equity fund, meanwhile, posted negative returns of -.7.24% over the month.
However, it has a much more successful long-term track record, delivering 26.1% and 89.2% to investors over three and five years, roughly five and six times higher than the IA TAR sector average of 5.1% and 13.7%.
The absolute return sector has been criticised for its lacklustre performance during the more volatile first quarter, given its claim to offer investors a positive return in all market conditions.
Tags: Baillie Gifford | City Financial | Invesco | Legg Mason | Neptune
