Top Picks of the Month – September 2021
We show here a selection of funds that might be of interest to you. They were chosen either for their outstanding performance, which is likely to continue, or for their potential for attractive returns or diversification given current and expected market conditions.
Despite some spikes in volatility, global equities extended their gains in August, with the MSCI ACWI Index breaking further into uncharted territory. Japan and the US were the best performers in August. Emerging market equities initially trailed under the combination of a tougher stance from Chinese regulators and increased virus concerns, but later rebounded over the month. Europe lagged after a strong July.
From a sector standpoint, financials delivered the strongest returns but proved to be an outlier among cyclical stocks. Industrials underperformed, while materials and energy posted the weakest gains. Information technology outperformed in a strong month for semiconductors. Defensive sectors were mixed: utilities and healthcare outpaced the market, but real estate and consumer staples lagged.
Small caps recovered in August, and alpha was strong across our fund selection with Granahan US Focused Growth and Berenberg European Small Cap outperforming their benchmark by +1.4% and +2.2% respectively.
With climate change dominating the headlines again this month, related funds benefitted from another boost in August. Federated Hermes Impact Opportunities, Liontrust Sustainable Future Global Growth, Mandarine Global Transition and Ninety One Global Environment exhibit among the best alpha generation, ranging from +2.1% to +1.2%.
Our EM fixed income and equity funds, i.e Vontobel Emerging Markets Debt and GemEquity posted solid outperformance in a tough month for China, respectively +0.8% and +0.5%.