Where is Momentum Shifting To?
Studies have shown that markets tend to trend. In the shorter term, 1 to 3 years, stocks tend to trend or have momentum. In the longer term, 3 to 5 years, they mean revert. It means that Tesla can rise from 100 to 1500 in 3 years. Thereafter, a company may exhibit slower growth, valuations too high and cause it to fall back to 800.
Best momentum over 1 week, 1 month and 3 months.
I’ve explored looking at the top performing funds over 1 week, 1 month and 3 months. This is to spot which sectors are the fastest growing:
- Blackrock World Energy. The energy sector is rocketing. Up 8.5% over 1 week. This is cyclical sector
- Morgan Stanley Global Prop Fund / Invesco Global Real Estate Securities Fund. Up 4.1% and 3.4%. Real estate is recovering. This is cyclical.
- Robeco Capital Growth. US Select Opportunities Equities. Up 3.2%. This is tracking S&P500.
- Blackrock World Mining. Up 3%. This is cyclical.
- Robeco New World Financials. Up 1.9%. This is cyclical / disruptive.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | WoW Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | |
BlackRock Global Funds - World Energy Fund | Equity - Energy | USD | Accumulation | N/A | Unhedged | LU0122376428 | MERENER LX Equity | 4 | 45% | USD 5000 | 25/02/2021 | 14.37 | 14.11 | 8.45 | 36.18 | - | 06/04/2001 | |
Morgan Stanley Investment Funds - Global Property Fund | Equity - Global Real Estate | USD | Accumulation | N/A | Unhedged | LU0266114312 | MORGPRA LX Equity | 4 | 55% | Nil | 25/02/2021 | 30.08 | 29.59 | 4.12 | 22.47 | - | 31/10/2006 | |
Invesco Funds-Invesco Global Real Estate Securities Fund | Equity - Global Real Estate | USD | Accumulation | Annually | Unhedged | LU1775976944 | IVRESAA LX Equity | 4 | 55% | 1,500 | 25/02/2021 | 11.91 | 11.80 | 3.39 | 19.27 | - | 10/08/2018 | |
Robeco Capital Growth Funds - US Select Opportunities Equities | Equity - US Mid Cap | USD | Distribution | Annually | Unhedged | LU0975848770 | RUSOEEU LX Equity | 3 | 50% | 1 | 24/02/2021 | 182.46 | 179.05 | 3.24 | 22.98 | - | 04/10/2013 | |
BlackRock Global Funds - World Mining Fund | Equity - Precious Metals | USD | Accumulation | N/A | Unhedged | LU0075056555 | MIGWMFA LX EQUITY | 4 | 50% | USD 5000 | 25/02/2021 | 62.31 | 61.22 | 3.01 | 28.14 | - | 21/03/1997 | |
Robeco Capital Growth New World Financials | Equity - Financials | USD | Accumulation | N/A | Unhedged | LU1079558364 | ROBNWDU LX Equity | 4 | 65% | Nil | 24/02/2021 | 172.14 | 169.44 | 1.89 | 25.16 | - | 26/06/2014 |
Over 1 month, it is the following:
- Blackrock World Energy up 18.4%. Cyclicals
- Blackrock World Mining up 15.1% Cyclicals
- Robeco US Select Opp Equities up 12.8%. Broad index.
- Robeco New World Financials up 12.5%. Disruptive / Cyclical.
- Goldman Sachs India Equity Portfolio. Up 10.2%. Broad index.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | 1 Mth Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | Fund cut-off subscription | Fund cut-off redemption | |
BlackRock Global Funds - World Energy Fund | Equity - Energy | USD | Accumulation | N/A | Unhedged | LU0122376428 | MERENER LX Equity | 4 | 45% | USD 5000 | 25/02/2021 | 14.37 | 14.11 | 18.37 | 36.18 | - | 06/04/2001 | Dealing Day | Dealing Day | |
BlackRock Global Funds - World Mining Fund | Equity - Precious Metals | USD | Accumulation | N/A | Unhedged | LU0075056555 | MIGWMFA LX EQUITY | 4 | 50% | USD 5000 | 25/02/2021 | 62.31 | 61.22 | 15.13 | 28.14 | - | 21/03/1997 | Dealing Day | Dealing Day | |
Robeco Capital Growth Funds - US Select Opportunities Equities | Equity - US Mid Cap | USD | Distribution | Annually | Unhedged | LU0975848770 | RUSOEEU LX Equity | 3 | 50% | 1 | 24/02/2021 | 182.46 | 179.05 | 12.80 | 22.98 | - | 04/10/2013 | NAV Date -1 BD | NAV Date -1 BD | |
Robeco Capital Growth New World Financials | Equity - Financials | USD | Accumulation | N/A | Unhedged | LU1079558364 | ROBNWDU LX Equity | 4 | 65% | Nil | 24/02/2021 | 172.14 | 169.44 | 12.53 | 25.16 | - | 26/06/2014 | NAV Date -1 BD | NAV Date -1 BD | |
Goldman Sachs Funds - Goldman Sachs India Equity Portfolio | Equity - India | USD | Distribution | Annually | Unhedged | LU0333810009 | GSINDBA LX Equity | 4 | 0% | 5,000 | 25/02/2021 | 27.17 | 26.89 | 10.22 | 26.31 | 0.18 | 26/03/2008 | Dealing Day | Dealing Day | |
Schroder ISF Taiwanese Equity | Equity - Taiwan | USD | Accumulation | N/A | Unhedged | LU0270814014 | SCHTWAA LX Equity | 4 | 0% | 1,000 | 25/02/2021 | 36.19 | 35.83 | 9.11 | 19.33 | - | 18/01/2008 | Dealing Day | Dealing Day | |
Pictet - Premium Brands | Equity - Consumer Discretionary | USD | Accumulation | N/A | Unhedged | LU0280433847 | PFPREMP LX Equity | 4 | 45% | Nil | 25/02/2021 | 273.96 | 270.06 | 8.09 | 21.20 | - | 23/01/2007 | Dealing Day | Dealing Day |
Over 3 months, the top performing are:
- Mining up 28.3%. Blackrock World Mining.
- Schroder Taiwanese Equity up 22.5%.
- Blackrock World Energy up 22.2%
- Barings HK China Fund up 20.2%
- Schroder Asian Equity Yield up 20.2%.
- Fidelity Emerging Market up 19.2%
Besides cyclicals, Asian and Emerging indices have recovered strongly since Nov 2020.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | WoW Return (%) | 1 Mth Return (%) | 3 Mths Return (%) | YTD Return (%) | 1 Yr Return (%) | 3 Yr Ann Return (%) | 5 Yr Ann Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | Fund cut-off subscription | Fund cut-off redemption | |
BlackRock Global Funds - World Mining Fund | Equity - Precious Metals | USD | Accumulation | N/A | Unhedged | LU0075056555 | MIGWMFA LX EQUITY | 4 | 50% | USD 5000 | 25/02/2021 | 62.31 | 61.22 | 3.01 | 15.13 | 28.26 | 15.11 | 86.84 | 14.72 | 22.41 | 28.14 | - | 21/03/1997 | Dealing Day | Dealing Day | |
Schroder ISF Taiwanese Equity | Equity - Taiwan | USD | Accumulation | N/A | Unhedged | LU0270814014 | SCHTWAA LX Equity | 4 | 0% | 1,000 | 25/02/2021 | 36.19 | 35.83 | 0.49 | 9.11 | 22.54 | 14.38 | 58.11 | 18.06 | 19.80 | 19.33 | - | 18/01/2008 | Dealing Day | Dealing Day | |
BlackRock Global Funds - World Energy Fund | Equity - Energy | USD | Accumulation | N/A | Unhedged | LU0122376428 | MERENER LX Equity | 4 | 45% | USD 5000 | 25/02/2021 | 14.37 | 14.11 | 8.45 | 18.37 | 22.19 | 22.61 | 14.05 | (6.51) | 0.35 | 36.18 | - | 06/04/2001 | Dealing Day | Dealing Day | |
Barings International Umbrella Fund - Barings Hong Kong China Fund | Equity - China (Non-A Share) | USD | Accumulation | N/A | Unhedged | IE00B7JY6H00 | BHKCAUA ID Equity | 4 | 40% | 5,000 | 25/02/2021 | 2,260.21 | 2,256.47 | (6.64) | 3.84 | 21.04 | 12.00 | 77.76 | 19.36 | 24.35 | 22.42 | - | 02/04/2012 | Dealing Day | Dealing Day | |
Schroder ISF Asian Equity Yield | Equity - Asia ex Japan High Dividend | USD | Accumulation | N/A | Unhedged | LU0188438112 | SCHAEYA LX Equity | 4 | 55% | 1,000 | 25/02/2021 | 40.68 | 39.94 | 0.14 | 7.96 | 20.22 | 11.22 | 42.24 | 8.04 | 13.04 | 18.16 | - | 11/06/2004 | Dealing Day | Dealing Day | |
Fidelity Funds - Emerging Markets Fund | Equity Global Emerging Markets | USD | Accumulation | N/A | Unhedged | LU0261950470 | FIEMAAU LX Equity | 4 | 55% | 2,500 | 25/02/2021 | 28.35 | 28.27 | (3.64) | 5.55 | 19.17 | 9.50 | 53.00 | 10.65 | 16.69 | 20.79 | - | 25/09/2006 | Dealing Day | Dealing Day |
In summary:
Cyclicals like Mining, Energy, Financials, Asia and Emerging Markets seem to have taken over leadership in terms of momentum. This momentum may be sustainable for another 6 to 12 months.
Worst momentum over 1 and 3 months
The worst momentum over 1 month are:
- Blackrock World Gold down 5.1%. Precious metals took a big hit as money flowed to Bitcoin, and the yield curve steepened, giving institutional investors an outlet to get yield for their cold hard cash.
- Legg Mason Western Asset Macro Opp Bond Fund down 4.2%. Bonds seem to have taken a hit as well due to yield curve steepening.
- Goldman Sachs Global Strategic Macro Bond Fund down 2.3%
- Pictet Global Emerging Debt down 1.9%.
- PIMCO global investment grade credit fund. Down 1.9%.
At this point, only short duration bonds survive the yield curve steepening.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | WoW Return (%) | 1 Mth Return (%) | 3 Mths Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | |
BlackRock Global Funds - World Gold Fund | Equity - Precious Metals | USD | Accumulation | N/A | Unhedged | LU0055631609 | MIGGMFI LX Equity | 4 | 55% | USD 5000 | 25/02/2021 | 39.62 | 39.03 | 1.07 | (5.06) | (1.64) | 34.60 | - | 30/12/1994 | |
Legg Mason Global Funds PLC-Legg Mason Western Asset Macro Opportunities Bond Fund | Fixed Income - Global Blend | USD | Accumulation | N/A | Unhedged | IE00BC9S3Z47 | WAMOAAU ID Equity | 5 | 70% | 1,000 | 25/02/2021 | 143.17 | 144.78 | (2.89) | (4.18) | (5.46) | 10.99 | - | 29/11/2013 | |
Goldman Sachs Funds SICAV - GS Global Strategic Macro Bond Ptf | Hedge Funds - Global Macro | USD | Distribution | Annually | Unhedged | LU1111995319 | GSMBBIU LX Equity | 5 | 70% | 5,000 | 25/02/2021 | 96.32 | 97.02 | (1.67) | (2.30) | (1.29) | 4.48 | 3.42 | 22/10/2014 | |
Pictet - Global Emerging Debt | Fixed Income - Global EMD Hard Currency Bonds | USD | Distribution | Monthly | Unhedged | LU0476845010 | PFIFPMI LX Equity | 4 | 55% | Nil | 24/02/2021 | 157.22 | 157.15 | (1.03) | (1.87) | (0.91) | 11.86 | 4.26 | 23/02/2010 | |
PIMCO Global Investors Series plc - Global Investment Grade Credit Fund | Fixed Income - US Investment Grade | USD | Accumulation | N/A | Unhedged | IE00B3K7XK29 | PGIGCEA ID Equity | 5 | 80% | USD 1000 | 25/02/2021 | 19.55 | 19.68 | (1.11) | (1.86) | (1.76) | 6.68 | - | 10/12/2008 |
Over 3 months, bond funds again dominated the worst momentum sectors.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | WoW Return (%) | 1 Mth Return (%) | 3 Mths Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | Fund cut-off subscription | Fund cut-off redemption | |
Legg Mason Global Funds PLC-Legg Mason Western Asset Macro Opportunities Bond Fund | Fixed Income - Global Blend | USD | Accumulation | N/A | Unhedged | IE00BC9S3Z47 | WAMOAAU ID Equity | 5 | 70% | 1,000 | 25/02/2021 | 143.17 | (2.89) | (4.18) | (5.46) | 10.99 | - | 29/11/2013 | Dealing Day | Dealing Day | |
Invesco Nippon Small/Mid Cap Equity Fund | Equity Japan Small Cap | USD | Distribution | Annually | Unhedged | LU0607522496 | INVAADU LX Equity | 4 | 50% | 1,500 | 25/02/2021 | 23.07 | (1.16) | (1.62) | (2.41) | 22.24 | - | 07/07/2011 | Dealing Day | Dealing Day | |
Wellington Global Bond Fund | Fixed Income - Global Investment Grade | USD | Distribution | QUARTERLY | Hedged | IE00B4JQ4L58 | WELGBBU ID Equity | 4 | 65% | 5,000 | 25/02/2021 | 11.88 | (0.73) | (1.58) | (2.03) | 3.01 | 0.47 | 09/02/2012 | Dealing Day | Dealing Day | |
PIMCO Global Investors Series plc - Global Investment Grade Credit Fund | Fixed Income - US Investment Grade | USD | Accumulation | N/A | Unhedged | IE00B3K7XK29 | PGIGCEA ID Equity | 5 | 80% | USD 1000 | 25/02/2021 | 19.55 | (1.11) | (1.86) | (1.76) | 6.68 | - | 10/12/2008 | Dealing Day | Dealing Day |
|
Observation:
Gold and bond funds appear to be the worst hit and according to the momentum theory, will continue to go down for the next 6 to 12 months.
Mean Reversion
Interestingly, for the 3 year top performing sector, they are dominated almost entirely by US small caps, and the tech sector. We also see Pictet Robotics, JPMorgan China Pioneer A-share, Schroder China Equity Alpha Fund.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | 3 Yr Ann Return (%) | 5 Yr Ann Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | |
Polar Capital Funds plc - Global Technology Fund | Equity - Technology | USD | Distribution | N/A | Unhedged | IE00B433M743 | POLGTRU ID Equity | 4 | 55% | Nil | 24/02/2021 | 87.60 | 87.56 | 29.09 | 34.31 | 19.66 | - | 04/09/2009 | |
JPMorgan Funds - US Small Cap Growth Fund | Equity - US Small Cap | USD | Accumulation | N/A | Unhedged | LU0210535976 | JPUSAAU LX Equity | 4 | 55% | 1,000 | 25/02/2021 | 61.21 | 60.68 | 25.17 | 29.07 | 26.57 | - | 31/03/2005 | |
Pictet - Robotics | Equity - Technology | USD | Accumulation | N/A | Unhedged | LU1279333675 | PIRPUSD LX Equity | 4 | 55% | Nil | 25/02/2021 | 305.61 | 299.02 | 22.63 | 27.32 | 23.24 | - | 07/10/2015 | |
JH Global Technology Leaders Fund | Equity - Technology | USD | Accumulation | N/A | Unhedged | LU0070992663 | HENGLTI LX Equity | 4 | 60% | 2,500 | 25/02/2021 | 157.89 | 155.21 | 22.01 | 26.88 | 20.31 | - | 15/10/1996 | |
JPMorgan China Pioneer A-Share Fund | Equity - China A Share | USD | Accumulation | N/A | Unhedged | HK0000055621 | JFCHPNA HK Equity | 4 | 0% | 2,000 | 24/02/2021 | 85.56 | 88.18 | 21.48 | 27.11 | - | - | 19/06/2006 | |
Schroder Umbrella Fund II - China Equity Alpha Fund | Equity - China A Share | USD | Accumulation | N/A | Unhedged | HK0000138559 | SCCHEAA HK Equity | 4 | 50% | USD 1,000 or SGD200,000 for Non Accredited investors | 24/02/2021 | 401.81 | 410.73 | 20.46 | 25.92 | - | - | 08/03/2013 | |
BlackRock Global Funds - Sustainable Energy Fund | Equity - Alternative Energy | USD | Accumulation | N/A | Unhedged | LU0124384867 | MERNEWA LX Equity | 4 | 55% | USD 5000 | 25/02/2021 | 16.50 | 16.33 | 20.35 | 17.95 | 20.36 | - | 06/04/2001 |
Over 5 years, Polar Tech is up 34.3% pa, UBS China A up 29.6%, JPMorgan US Small cap up 29.1%.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | 3 Yr Ann Return (%) | 5 Yr Ann Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | Fund cut-off subscription | Fund cut-off redemption | |
Polar Capital Funds plc - Global Technology Fund | Equity - Technology | USD | Distribution | N/A | Unhedged | IE00B433M743 | POLGTRU ID Equity | 4 | 55% | Nil | 24/02/2021 | 87.60 | 87.56 | 29.09 | 34.31 | 19.66 | - | 04/09/2009 | Dealing Day | Dealing Day | |
UBS Lux Investment Sicav II - China A Opportunity | Equity - China A Share | USD | Accumulation | N/A | Unhedged | LU0971614614 | UBCAPA2 LX Equity | 4 | 40% | Nil | 25/02/2021 | 441.02 | 441.30 | 18.26 | 29.56 | 22.05 | - | 29/11/2013 | NAV Date -1 BD | NAV Date -1 BD | |
JPMorgan Funds - US Small Cap Growth Fund | Equity - US Small Cap | USD | Accumulation | N/A | Unhedged | LU0210535976 | JPUSAAU LX Equity | 4 | 55% | 1,000 | 25/02/2021 | 61.21 | 60.68 | 25.17 | 29.07 | 26.57 | - | 31/03/2005 | Dealing Day | Dealing Day | |
Pictet - Robotics | Equity - Technology | USD | Accumulation | N/A | Unhedged | LU1279333675 | PIRPUSD LX Equity | 4 | 55% | Nil | 25/02/2021 | 305.61 | 299.02 | 22.63 | 27.32 | 23.24 | - | 07/10/2015 | Dealing Day | Dealing Day | |
JPMorgan China Pioneer A-Share Fund | Equity - China A Share | USD | Accumulation | N/A | Unhedged | HK0000055621 | JFCHPNA HK Equity | 4 | 0% | 2,000 | 24/02/2021 | 85.56 | 88.18 | 21.48 | 27.11 | - | - | 19/06/2006 | Dealing Day | Dealing Day | |
JH Global Technology Leaders Fund | Equity - Technology | USD | Accumulation | N/A | Unhedged | LU0070992663 | HENGLTI LX Equity | 4 | 60% | 2,500 | 25/02/2021 | 157.89 | 155.21 | 22.01 | 26.88 | 20.31 | - | 15/10/1996 | Dealing Day | Dealing Day |
Observation:
Growth has been outperforming for the last 5 years. It means that sectors such as tech, sustainability funds, robotics are NOT new themes. They have outperformed in the last 5 years and MAY no longer be cheap. China A shares has also been rallying. We must not conclude that they will fall going forward. Rather we must be very cautious going forward, monitor the technical analysis and valuations of these sectors. They may NOT continue to be the top performers as SOME investors ROTATE OUT of these sectors into the underperforming ones.
Worst Performing sectors Over 3 years
- Blackrock Latin America has been down 6.9% pa. This may be a region long overdue.
- Blackrock World Energy down 6.5% pa. This sector appeared as top momentum and should be looked at closely.
- Schroder Latin America.
- Barings Eastern European Fund.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | WoW Return (%) | 1 Mth Return (%) | 3 Mths Return (%) | YTD Return (%) | 1 Yr Return (%) | 3 Yr Ann Return (%) | 5 Yr Ann Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | Fund cut-off subscription | Fund cut-off redemption | |
BlackRock Global Funds - Latin America Fund | Equity - Latin America | USD | Accumulation | N/A | Unhedged | LU0072463663 | MERLTAI LX Equity | 4 | 45% | USD 5000 | 25/02/2021 | 62.27 | 61.73 | (2.52) | 2.18 | 6.83 | (3.01) | (2.18) | (6.92) | 7.38 | 35.33 | - | 01/08/1997 | Dealing Day | Dealing Day | |
BlackRock Global Funds - World Energy Fund | Equity - Energy | USD | Accumulation | N/A | Unhedged | LU0122376428 | MERENER LX Equity | 4 | 45% | USD 5000 | 25/02/2021 | 14.37 | 14.11 | 8.45 | 18.37 | 22.19 | 22.61 | 14.05 | (6.51) | 0.35 | 36.18 | - | 06/04/2001 | Dealing Day | Dealing Day | |
Schroder ISF Latin American | Equity - Latin America | USD | Accumulation | N/A | Unhedged | LU0106259046 | SCHLAAA LX Equity | 4 | 0% | 1,000 | 25/02/2021 | 39.45 | 39.39 | (2.81) | (0.88) | 4.13 | (5.42) | 7.32 | (2.56) | 9.50 | 33.98 | - | 17/01/2000 | Dealing Day | Dealing Day | |
Barings Global Umbrella Fund - Barings Eastern Europe Fund | Equity - Europe Emerging Markets | USD | Distribution | Annually | Unhedged | IE0000805634 | BRGESEI ID Equity | 4 | 0% | 5,000 | 25/02/2021 | 90.20 | 90.78 | (0.92) | 4.15 | 12.37 | 4.11 | 12.63 | (0.51) | 11.21 | 28.40 | 2.01 | 20/09/1996 | Dealing Day | Dealing Day |
|
Worst performing over 5 years. Blackrock World Energy. Morgan Stanley Global Prop Fund. Invesco Global Real Estate. Blackrock European Equity Income. Fidelity ASEAN Fund.
Fund Name | Category | Currency | Share Type | Distribution Frequency | Hedged/ | ISIN | BB Ticker | Risk | AR* | Fund House Min Investment Amt (in share class currency)** | Last Bloomberg Update | Latest NAV | Prior Day NAV | 3 Yr Ann Return (%) | 5 Yr Ann Return (%) | 3 Yr Ann Std Dev | 12Mth Div Yield (Gross) | Launch Date | Fund cut-off subscription | Fund cut-off redemption | |
BlackRock Global Funds - World Energy Fund | Equity - Energy | USD | Accumulation | N/A | Unhedged | LU0122376428 | MERENER LX Equity | 4 | 45% | USD 5000 | 25/02/2021 | 14.37 | 14.11 | (6.51) | 0.35 | 36.18 | - | 06/04/2001 | Dealing Day | Dealing Day | |
Morgan Stanley Investment Funds - Global Property Fund | Equity - Global Real Estate | USD | Accumulation | N/A | Unhedged | LU0266114312 | MORGPRA LX Equity | 4 | 55% | Nil | 25/02/2021 | 30.08 | 29.59 | 0.63 | 2.98 | 22.47 | - | 31/10/2006 | Dealing Day | Dealing Day | |
Invesco Funds-Invesco Global Real Estate Securities Fund | Equity - Global Real Estate | USD | Distribution | Annually | Unhedged | LU1775977595 | IVRESAD LX Equity | 4 | 55% | 1,000 | 25/02/2021 | 12.58 | 12.47 | 3.00 | 3.34 | 19.32 | 1.26 | 10/08/2018 | Dealing Day | Dealing Day | |
BlackRock Global Funds - European Equity Income fund | Equity - Europe Dividend | USD | Distribution | Monthly | Hedged | LU1019632923 | BGEA6UH LX Equity | 3 | 65% | USD 5000 | 25/02/2021 | 11.85 | 11.81 | 6.78 | 6.85 | 16.75 | 3.94 | 30/01/2014 | Dealing Day | Dealing Day | |
Fidelity Funds - ASEAN Fund | Equity - ASEAN | USD | Distribution | Annually | Unhedged | LU0048573645 | FIDLAEI LX Equity | 4 | 55% | 2,500 | 25/02/2021 | 35.25 | 35.14 | 0.27 | 6.98 | 21.40 | 1.63 | 01/10/1990 | Dealing Day | Dealing Day |
|
Observation:
- It appears that the energy sector is primed for a major recovery. It fulfils the criteria of mean reversion (worst performing sector over 3 and 5 years), and momentum (top performing over 1 and 3 months).
- Real estate sector, e.g. developers, REITs have underperformed for the past 3 to 5 years and may bounce back. But it is NOT in the momentum list.
- European equities, having been laggards for many years, look like mean reverting.
- ASEAN sector, primarily Singapore equities, may mean revert.
These are general observation. But we conclude that the themes of ESG investing, tech are NOT fresh themes. They have outperformed for 3 to 5 years and are no longer cheap. Hence we may see further rotations out into energy, emerging markets, Asia, Europe and especially Latin America. But such studies are often inconclusive and we need to filter out the sectors / countries individually. Some trends may be secular and continue to outperform despite high valuations, e.g. disruptive sectors, healthcare. A lot depends on growth in revenue for the sector.
Love this article and would love to read more about the mining and energy sectors. RW
ReplyDelete