- The Dow Jones Industrial Average closes again at a new all-time high of 22,093.
- The best-performing fund so far for 2017 continues to be the Neuberger Berman Greater China Eq Instl (NCEIX).
- Latin America Equities is the best-performing mutual fund subcategory based on a rolling month.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends in the mutual funds space.
Market Wrap-Up
The financial sector was this week’s top-performing area, up 1.88%. The sector remains the best trailing one-year performer and is up 35.19% for that time period. The sector saw gains thanks to the big banks gaining for the week. Bank of America (BAC) and JPMorgan Chase & Co. (JPM) were up 3.91% and 2.64% for the week, respectively.
Explore our Mutual Fund Education section to learn more about important mutual fund concepts.
International Equities – International markets showed gains for the week, except the Nikkei. The MSCI Developed Index had an increase of 0.88%. The MSCI Emerging Index also had an increase, up 0.45% for the week. The MSCI Emerging Market Index remains the best-performing index on a year-to-date basis, moving up 25.94%. On the other hand, Japan’s Nikkei 225 saw another decline for this week, down 0.04% to close at 19,952.
Commodities – The commodity sector saw a slight decline from last week’s gains. Crude oil had a decrease of $0.13 per barrel and closed at $49.58 per barrel. The price of gold declined $10 per troy ounce to close at $1,258. Copper was also up slightly for the week, increasing by $0.01 to close at $2.89.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Taxable Bonds – Treasury yields decreased across all maturities except the 2-year Treasury, which continued to yield 1.35% this week. The 10-year Treasury yield had a decline of 3 bps, while the 30-year Treasury yield decreased 6 bps to 2.84%.
Municipal Bonds – Similar to treasury yields, municipal yields all decreased this week. The 2-year AAA-rated bonds decreased 2 bps. Both the 10-year AAA-rated bonds and the 30-year AAA-rated bond decreased 3 bps. Municipal bond funds saw inflows for the third week, pulling in $90 million. The largest credit spread among Treasury and muni bonds increased by 1 bps to 58 bps for the 5-year securities.
Performance Snapshot: Top Fund Category
| Category | Top Subcategory | 1-Month Subcategory Return (%) | Top Subcategory Performer | Ticker | 1-Month Fund Return (%) | Performance Rationale |
|---|---|---|---|---|---|---|
| U.S. Equity Fund | Large Cap Growth | 3.22% | Prudential Jennison Focused Growth Z | SPFZX | 7.37% | The fund's largest holding is Apple Inc (AAPL), which is up over 35% YTD and over 13% for the trailing one-month. |
| International Equity | Latin America Equities | 9.35% | BlackRock Latin America Instl | MALTX | 9.38% | The fund invests in Latin American companies. For instance, its largest holding, Itau Unibanco Holding SA (ITUB) is up over 12% for the rolling one-month. |
| Commodities | Broad Basket | 1.15% | Credit Suisse Commodity Acss Strat C | CRCCX | 4.58% | WIth commodities down this week, the fund was protected by being heavily invested in over 74% bonds. |
| Taxable Bonds | Emerging Mkts Local Currency Bonds | 2.54% | Barings Emerging Markets Local Ccy Dbt I | BXLIX | 3.82% | With global bond yields declining last week, emerging market bonds witnessed the biggest gains. |
| Municipal Bonds | High Yield Muni | 0.94% | Nuveen CA High Yield Municipal Bond I | NCHRX | 1.50% | With muni bonds yields declining, high yield bonds saw the biggest gains. |
Performance Snapshot: Top Fund
The fund’s largest holding is in Tencent Holdings Ltd (HKG:0700), which is up over 64% on a year-to-date basis and over 14% for the trailing one-month.
Top 5 Performers
The following table provides the top-performing mutual funds on a YTD basis as of August 4, 2017. Only those funds that are rated five stars by Morningstar and that generated YTD returns greater than or equal to 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 |
|---|---|---|---|---|---|---|---|
| Neuberger Berman Greater China Eq Instl | NCEIX | China Equities | 42.57% | 1.76% | 50.10% | $104 | Financial Services |
| Wasatch Emerging India Institutional | WIINX | India Equities | 40.00% | 2.00% | 35.00% | $200 | Financial Services |
| Morgan Stanley Inst International Opp IS | MNOPX | Foreign Large Cap Growth Equities | 39.68% | 5.64% | 50.50% | $230 | Consumer Defense |
| Morgan Stanley Inst Global Opp IS | MGTSX | Global Equities | 35.62% | 3.82% | 55.80% | $1,130 | Technology |
| Matthews Asia Innovators Institutional | MITEX | Pacific/Asia ex-Japan Stk | 35.60% | 1.01% | 33.30% | $149 | Technology |