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Mutual Funds Weekly Roundup: March 23

Brian Mathews Mar 23, 2017

MutualFunds.com provides weekly information (March 13 – March 17) about any material impact on the mutual funds industry due to major economic and corporate events around the world. In addition, performance statistics on the top funds and fund categories are also provided.

U.S. markets were all slightly positive, with the Dow Jones Industrial Average reaching 20,915.

The best-performing fund so far for 2017 is T. Rowe Price Global Technology (PRGTX).

India Equities is the best-performing mutual fund subcategory.

Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends.

Market Wrap-Up

U.S. Equities – U.S. equity markets had a slight rebound from last week’s decline. The Dow Jones Industrial Average had a moderate increase of 0.06% to 20,915 and is still up 5.83% year-to-date. The S&P 500 increased 0.24% for the week, hitting 2,378. Among the major U.S. indices, the NASDAQ was the best performer for the week, increasing 0.67% for the week to 5,901. With the Fed raising rates by 0.25% this week, markets reacted positively as the decision had been expected by most investors.

The real estate sector was this week’s best performer and was up 1.68% for the week. However, it remains the only negative sector on a trailing 1-year return basis, down -1.14%.

Explore our Mutual Fund Education section to learn more about important mutual fund concepts.

International Equities – International equities did very well on average, with the MSCI Developed Index increasing 2.09%, while the MSCI Emerging Index increased by 4.29% for the week. Japan’s NIKKEI 225 had a slight decrease of -0.42% for the week and closed at 19,522.

Commodities – The commodity sector improved for the week, with oil seeing a slight increase of $0.29 per barrel and closing at $48.78 per barrel. The price of gold increased by $29 per troy ounce to $1,230, while copper also had an increase of $0.10 per pound and closed at $2.69.

Be sure to read our important tips on how to invest in the right commodity-based mutual fund.

Taxable Bonds – Treasury yields declined across all maturities, with the 2-year Treasury yield decreasing by 5 bps. The 10-year and 30-year Treasuries also saw decreases from last week’s increases, down by 8 bps and 5 bps, respectively.

Municipal Bonds – Shorter-term municipal yields increased with the 2-year AAA-rated municipal yield increasing by 4 bps. The 10-year and 30-year AAA-rated municipal yields, on the other hand, decreased by 5 bps and 6 bps, respectively.

Municipal bond funds posted outflows of $149 million for the week. With the Fed raising rates during this week’s meeting, investors seem to be fleeing from bond funds that are likely to be negatively impacted.

In this context, you can also read about essential tax tips for mutual funds, so that you are aware of key strategies to limit your tax burden.

Performance Snapshot: Top Fund Category

The following table provides a list of the top-performing mutual fund subcategories for the previous week within the broader categories of the industry. In each of these subcategories, we have listed the top mutual funds based on the 1-month return generated as of March 17, 2017.

Category	Top Subcategory	1-Month Subcategory Return (%)	Top Subcategory Performer	Ticker	1-Month Fund Return (%)	Performance Rationale
U.S. Equity Fund	Large Cap Growth	1.51%	Polen Growth Institutional	POLIX	3.58%	Fund has over 35% in the technology sector, which is up over 11% YTD.
International Equity	India Equities	5.61%	Franklin India Growth Adv	FIGZX	6.11%	Fund invests in India-based companies. The BSE SENSEX Index is up over 11% YTD.
Commodities	Broad Basket	-3.66	Catalyst Hedged Commodity Strategy A	CFHAX	-0.27%	Fund invests in commodity options and hedging strategies. With oil falling 15% YTD, this fund was protected by staying in cash.
Taxable Bonds	Emerging Markets Bonds	0.78%	Barings Emerg Mkts Dbt Blnded Ttl Ret I	BXEIX	3.46%	Fund invests in bonds of emerging market countries, which have been less effective due to interest rate hikes.
Municipal Bonds	High Yield Municipal Bonds	0.24%	Oppenheimer Rochester® AMT-Free Munis Y	OMFYX	1.39%	With a yield of over 4%, this fund is more attractive to investors in a rising interest rate environment.

Performance Snapshot: Top Fund

Top-performing fund: T. Rowe Price Global Technology (PRGTX)

This fund’s largest holding is in Salesforce.com Inc (CRM), which is up more than 21% YTD.

Top 5 Performers

The following table provides the top-performing mutual funds on a YTD basis as of March 17, 2017. Only those funds that are rated 5 stars by Morningstar and that generated YTD returns greater than that achieved by the S&P 500 are included.

Top-Performing Fund	Ticker	Category	YTD Return (%)	Net Expense Ratio (%)	% of Assets in Top 10 Holdings	Net Assets $ (Millions)	Top Sector Invested
T. Rowe Price Global Technology	PRGTX	Global Equities	17.32%	0.91%	61.20%	$3,800	Technology
Wasatch Emerging India Institutional	WIINX	India Equities	17.28%	2.00%	32.90%	$104	Financial Services
Morgan Stanley Inst International Opp I	MIOIX	Foreign Large Cap Growth Equities	14.74%	1.34%	49.30%	$85	Technology
Matthews India Instl	MIDNX	India Equities	14.71%	0.90%	44.60%	$1,770	Financial Services
DFA Emerging Markets Small Cap I	DEMSX	Emerging Markets Equities	14.61%	0.92%	3.90%	$6,080	Consumer Cyclical