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.
Although China’s economy only expanded by 6.7% over 2016, the weakest full-year growth since 1990, this still looked more attractive to many investors, than the ‘lower for longer’ growth of developed markets.
The China/Greater China segment delivered the second highest returns of the first quarter at 11.54%, nearly level with the gold medal sector.
Because the Chinese market has become so mature, it is starting to suffer from the classic problems that most “emerged” markets encounter at some stage – banking and property crises, said Investment Quorum’s CIO Peter Lowman.
Although China appears to be a “toxic market” at times, Lowman thinks the economy could have further to go.
“China is starting to open up its market to the investment world more. And people are starting to surmise whether asset allocation weightings in the major indices will go up.
“Investors are looking at China as a cheap area at the moment, but investing in the region comes with some health warnings as it always does.
“Still, I can foresee momentum from further interest and more money following the market for a time,” he said.