Just 12 funds from last month's 30 Best of the Best (BOTB) Selection regained their position in this month's shortlist. Politics played its part with the result of the French Presidential election first round sending european equities scampering higher. In addition the surprise announcement of the UK general election caused the pound to rally strongly. A strengthening pound is bad news for investors' overseas funds as their value is immediately reduced due to the change in the currency exchange rate.
Unsurprisingly the BOTB's european equity exposure has risen this month and two hedged global funds have entered the mix. These funds are not affected by the currency exchange rates which is a good thing should the pound keep strengthening. This is the first time since before the Brexit vote that we've seen funds with a hedged currency exposure enter the BOTB. I've covered the outlook for the pound in my article Technical Analysis May 2017.
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