One year to the day since Americans took to the polls to elect their 45th President, Sheridan Admans, investment research manager at The Share Centre, outlines why he has added two funds with a focus towards the Americas to the Platinum 120.
Technological utopia apparent amongst investors in October
- First time in 2017 two technology focussed funds feature in top 10 – are new apple products reason for focus?
- Brexit challenges continues the trend in our Top Traded of investor seeking oversea diversification
- India and Japan are two regions that continue to capture investors’ attention
Sheridan Admans, Investment Manager at The Share Centre, examines The Share Centre’s ten top traded funds in October 2017:
Top traded funds in October 2017 from The Share Centre:
- CF Woodford Equity Income
- Fundsmith Equity
- Leg Mason Japan
- Jupiter India
- Man GLG Continental European Growth
- Lindsell Train Global Equity
- AXA Framlington Global Technology
- Newton Global
- Old Mutual UK Mid-Cap
- Henderson Global Technology
UK focussed funds have appeared prominently over time in the top traded lists but investor activity has looked unsettled for some months swinging between small, mid and large caps. In October, it appears personal investors are moving away from the region and seeking wider diversification. This is possibly a symptom of difficult Brexit negotiations and the possibility that the UK economy might be entering a slower growth trajectory than other developed economies.
Instead, it appears investors are opting for technology specific funds including firm favourite AXA Framlington Global Technology. and newcomer to the list this month Henderson Global Technology. The roll out of the iPhone 8 series happened in October after the announcement of its impending release in September, and both of these funds have c. 10% of their holdings in the technology titan which could have spiked investor’s interest. Generally however, there appears to be a wider momentum in what is a very attractive and undervalued sector with clear longer term prospects.
Investor appetite has showed no sign of waning, with money continuing to flow towards established and trusted managers who have proven track records through a variety of economic and market conditions. All the while, India and Japan remain two regions that continue to capture investors’ attention, likely as a result of the positive economic reforms they are both undergoing.
Wider global diversification is clearly being sought after, the presence of funds including Man GLG Continental European Growth,Lindsell Train Global Equity and Newton Global affirms this. For those investing in the UK, mid-caps remain the preference. As we’ve stated previously, this is likely as they generate a better mix of revenues domestically and from oversees have seen solid returns in 2017. Indeed, they appear to have suffered to a much lesser extent than their large cap peers as a result of the, what was then, likely base rate rise, which sent the pound higher.
Top traded funds represents the total number of deals completed by our customers in these funds in October, and should not be taken as a recommendation to buy or sell.
*Data was analysed over the following time period: 1/10/17 – 31/10/17
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.