Best performing sectors for UK funds in 2017
By Kristen McGachey, 10 Apr 17
The results are in – here are the 10 strongest-performing sectors on a total return basis according to the UK’s Investment Association and data from FE Analytics.
Funds in the domestically focused, small-caps space gave competitors based in the UK All Companies category a run for their money in Q1. The latter only managed to generate total returns of 4.53% compared with a total return of 7.29% from the UK Smaller Companies.
Despite the “Brexit conundrum,” UK small and mid-caps continue to look cheap, argued Investment Quorum’s CIO Peter Lowman.
“We’ve seen a big pickup in spending, a 15% rise in January on a 12-month rolling period, purely because visits from overseas tourists have risen. That’s been a big bonus to a lot of small-cap companies, pubs, hotels, casinos , cinemas, that generate revenue from that sort of area.
“There’s also been a lot of talk from FX traders that the pound has reached the bottom and over the next 12-18 months can rally. If that were to happen, the tailwind that sterling weakness has given large caps could revert into a headwind and small and mid-caps could benefit.”