As explained in this month’s newsletter the market narrative was turned on its head at the start of September. Assets and equity sectors that performed well in August struggled in the first two weeks of September.
For UK investors the biggest influence on fund and portfolio returns was the strengthening of the pound. Over the course of the month the pound rallied more than 3% against the US dollar, a result of the Brexit saga and dollar strength, hampering returns of overseas holdings as well as index-linked gilt funds.
Unsurprisingly funds with significant US equity exposure struggled (i.e Artemis US Select and Fundsmith Equity fell over 3%). Meanwhile, after a shaky start to September, when defensive sectors lagged, infrastructure funds and REITs (i.e. Fidelity Global Property) rebounded to finish once again among last months’ BOTB top performers (up between 0.6%and 0.9%). Despite this, overall the BOTB was down an average of 1.23% for the month of September versus +0.99% for the average Mixed 40-85% Shares sector.
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