Funds focusing on North American smaller companies were the worst performing in the UK last month, as a weakening dollar and fears over a US recession shook the market.
North American Smaller Companies funds fell by 3.3 per cent in August, followed by funds focusing on China (-2.9 per cent), commodities (-2.3 per cent) and India (-1.3 per cent).
Despite this, the worst performing fund of the month was renewable-focused Active Solar, which fell 8.1 per cent over the month, or 21.6 per cent over the last three months.
Meanwhile, the best performing fund sector was ‘Property Other’, rising 2.4 per cent in the month as the Bank of England’s cut to interest rates gave the property sector a much needed boost.
However, the best performing fund was Kernow Equity Navigator, which rose 8.4 per cent throughout the month.
“This long short all cap UK equity fund is small but has had a strong 2024 up about 15 per cent,” said Ben Yearsley, director of Fairview Investing.
In investment trusts, PRS REIT jumped 16.7 per cent as a group of investors pushed to topple the trust’s chair and make major reforms to its investment philosophy, while Doric Nimrod Air Two rose 13.7 per cent on news that it would be selling off its assets at a premium.
“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,” said Yearsley.
Best performing funds in AugustReturn (per cent)Kernow Equity Navigator+8.4BNY Mellon Brazil Equity+5.3Ruffer Gold+5.1HSBC Brazil Equity+5.1Wellington Fintech+5.1Source: FE fundinfo