| Mutual funds return 20% on average |
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LONDON: Mutual funds in Britain recorded returns of around 20 per cent on an average in 2005, nearly twice as much as in 2004, according to data compiled by research firm Lipper. Funds with Japanese, Asian and energy-related portfolios dominated the rankings.
Standing tallest in the rankings is the Melchior Japan Opportunities Fund, which gave an unprecedented return of 81.57 per cent, according to Lipper, while the average return had been 19.93 per cent (compared with 9.5 per cent in 2004).
Investec Global Energy Fund gave a return of 80.48 per cent, taking the second spot. The bullish Japanese stock market and upward moving oil prices helped Japanese and energy-focused funds to put up a solid performance.
Lipper said only 0.5 per cent of the funds covered by it failed to give any returns while those focused on bonds had weaker returns.
Lipper's head of research Brian Harvey said export-led countries like South Korea benefitted from demand for technology products, while oil prices shot up because of the natural calamities in the U.S. He predicted subdued performance for mutual funds in 2006 as markets look towards underlying economic growth across Western markets and focus on inflation and interest rates.
Lipper tracks more than 135,000 funds globally.
The Melchior Japan Opportunities Fund is managed by Dalton Strategic Partnership, a firm set up by former staff of Merrill Lynch Investment Management and Goldman Sachs. Assets under its management have since risen from $100 million to $3 billion in three years.
Jupiter Emerging Markets and Invesco Perpetual Latin American figured in the top 20 funds list in both 2004 and 2005.
New Star UK Strategic Income (return of 37 per cent), Old Mutual UK Smaller Companies (33.5 per cent), Old Mutual UK Select Mid-cap (31.6 per cent), JPMF UK Dynamic (30.1 per cent) and Allianz RCM UK Mid-cap (30.9 per cent) were the toppers among funds focusing on U.K. shares.
Top five
1. Melchior Japan Opportunities (+81.57%)
2. Investec Global Energy (+80.48%)
3. Baring Korea (+75.07%)
4. SWIP Japan Smaller Companies (+69.67%)
5. Invesco Perpetual Latin American (+66.45%)
Worst five
1. Insight Investment Overseas Bond (-22.45%)
2. Marlborough UK Equity Growth (-1.97%)
3. CiF Neptune Global Health (-1.91%)
4. Threadneedle European Corporate Bond (-1.73%)
5. M&G European Corporate Bond (-1.21%)
Posted
on : Fri, 30 Dec 2005 02:05 GMT | Investments News
By : Pippa Fielding
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