August might have been the last month of the summer, but it was by no means quiet. Fund managers have had to navigate a tech sell off and rate cuts, and in the UK, the new government’s focus on budget deficits has raised concerns around the state of the UK economy.
Overall, two thirds of the 3039 funds in our dataset (Morningstar rated and available for sale in the UK) were up in August. Only about 10 percentage points separate the best and the worst performers, which range from -6.58% to 5.29%.
The best two funds were both Brazil equity funds, but the rest of the table is more mixed, featuring technology, infrastructure, and Japan equities, and one bond fund. Two gold equity funds were also among the best performers as gold hit new highs in August (up about 30% over the month with a high of $2,533 according to the Royal Mint).
The trends among the worst performers are more set. Two China A-share equity funds saw the biggest losses, but small- and mid-caps take up seven of the bottom 10 spots. US small caps alone feature four times after featuring heavily among the best performers in July.
Ben Yearsley, director at Fairview Investing, comments: “August really did feel a bizarre month starting with the mother of all meltdowns in Japan only to see most markets up by month end. There was panic at the start of August, and undoubtedly some investors probably sold out, but sitting through periods of volatility is often the best approach.
“Silly season is now out of the way and we can look forward to an autumn of party conferences, tax hikes and the US presidential election. So nothing much to worry markets!”
Brazil and Gold Top List in August
BNY Mellon Brazil Equity Fund
Morningstar Medalist Rating: Neutral
Fund Size: £19.4 million
Ongoing Charge: 1.06%
In August, BNY Mellon Brazil Equity rose 5.29%, while the average Brazil equity fund gained 6.08%. The fund placed in the fourth percentile for performance and lagged its benchmark, the MSCI Brazil 10/40 Index, by 1.59 percentage points. The 19.4 million fund has dropped 10.91% year to date, falling less than the average fund in its category, which fell 13.91%. Over the past three years, it is up 2.53%, while the average fund in its category is down 1.75%.
HSBC Global Investment Funds – Brazil Equity
Morningstar Medalist Rating: Negative
Fund Size: £98.2 million
Ongoing Charge: 2.14%
The 129 million HSBC Brazil Equity sits in the same category as the BNY Mellon fund above. It rose 5.07% in August but is down 16.91% this year. Over the past three years, the fund has dropped 3.56%.
WS Ruffer Gold Fund
Morningstar Medalist Rating: Gold
Fund Size: £645.5 million
Ongoing Charge: 1.25%
In August, the actively managed WS Ruffer Gold fund rose 5.07%, while the average equity precious metals fund gained 2.78%. The fund placed in the fifth percentile for performance and performed roughly in line with its benchmark, the FTSE Gold Mines Index. The 645.5 million fund has climbed 26.95% year to date, outperforming the average fund in its category, which rose 20.2%. Over the past three years, the Ruffer fund is up 9.96%, while the average fund in its category is up 2.03%.
China and US Small Caps Fall Behind in August
Guinness Asset Management Funds PLC – China A Share Fund
Morningstar Medalist Rating: Silver
Fund Size: GBP 3.92 million
Ongoing Charge: 0.89%
The 4 million Guinness China A Share fund, which falls into the China equity – A shares category, fell 6.85% in August. Year to date, the Guinness fund is down 19.95%. The fund was launched in March 2023.
Fisher Investments Institutional China A-Shares Equity Fund
Morningstar Medalist Rating: Gold
Fund Size: USD 11.95 million
Ongoing Charge: 0.39%
Fisher Investments China A-Shares Equity lost 6.58% in August, falling further than the average fund in the China equity – A shares category, which fell 3.98%. The 11.9 million fund has lost 12.35% year to date, while average fund in its category is down 5.06%. Over the past three years, the Fisher fund has dropped 15.01%.
FTGF Royce US Small Cap Opportunity Fund
Morningstar Medalist Rating: Neutral
Fund Size: USD 834.63 million
Ongoing Charge: 1.19%
The FTGF Royce US Small Cap Opportunity fund fell 6.51% in August. Year to date, the Franklin Templeton fund rose 4.10%, underperforming the caregory by 1.8%. Over the past three years, the fund has climbed 4.25%.
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