Mutual Funds Scorecard: January 7 Edition

Welcome to Please help us personalize your experience.

Select the one that best describes you

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission, we hope you enjoy your experience


Find the latest content and information here about the 2019 Charles Schwab Impact Conference.


Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.

Content focused on helping financial advisors build successful client relationships and grow their business.

Content geared towards helping financial advisors build better client portfolios.

Get insights on the industry trends and investment news from leading fund managers and experts.

Mutual Fund Scorecard Image


Mutual Funds Scorecard: January 7 Edition

Iuri Struta Jan 07, 2020

Every fortnight, provides a snapshot of the performance of some key mutual funds which tries to accurately capture the investor interest in specific areas of the financial markets. The report is aimed at providing a quick overview of the sectors, regions and asset classes that moved in a meaningful manner during the last two weeks.
In the first scorecard of the year, the picture in mutual fund flows mirrored what largely happened throughout 2019 – strong bond inflows failed to offset vast equity outflows.

Equity mutual funds experienced more than $24 billion in withdrawals for the two weeks ended December 24, while bond mutual funds enjoyed more than $15 billion in inflows. Domestic equities, large-cap and multi-cap mutual funds were the most hit, while investment-grade bonds were the most sought after asset with nearly $11 billion in inflows. Last time, total long-term mutual funds enjoyed two weeks of net inflows was at the beginning of 2019.

In the U.K., Boris Johnson secured a stunning election victory, allowing him to move forward with a deal to take Britain out of the European Union. The results of the vote also put an end to the idea that a second referendum was possible. Following the elections, the U.K. Parliament approved Johnson’s Brexit deal, paving the way for the country to leave the EU at the end of January.

The dispute between the U.S. and Iran intensified after Iran’s top general Qasem Soleimani was killed in a raid in Iraq. Iran’s Supreme Leader vowed retaliation, raising fears that the conflict could escalate into a full-blown war.

U.S. Chicago purchasing managers’ index (PMI) improved in December but remained in contraction territory at 48.9. A reading above 50 indicates industry expansion. This is the fourth consecutive negative monthly reading.

U.S. ISM’s manufacturing PMI was worse, reaching a low not seen since the 2009 financial and economic crisis. At 47.2, this is the fifth consecutive month of negative readings.

Chinese manufacturing PMI managed to maintain a positive reading for the second consecutive month, albeit slightly over the 50 threshold indicating expansion. Meanwhile, alternative Caixin PMI came in at 51.5 in December, the fifth positive reading in a row.

U.S. Federal Reserve’s minutes showed that policymakers are worried about persistently low inflation and downside risks stemming from weaknesses in global trade, but are likely to maintain interest rates on hold for a while. However, some of the policymakers expressed optimism about the economy’s resilience in the face of global trade weaknesses, particularly the strong job market.

A string of final European services PMIs were resilient, although slightly in decline compared with previous months. The large divergence between manufacturing and services sentiment has been the main theme throughout the entirety of 2019.

We provide this report on a fortnightly basis. To stay up to date with mutual fund market events, come back to our news page here.

Broad Indices

All broad indices were up in the last two weeks of the year, with one notable exception.

Technology stocks fund (NASDX) was the best performer from the pack, rising 1.36%.

At the other end of the spectrum, the Vanguard’s broad stock market fund (VTSMX) declined 0.11%.

Broad Indices Performance Jan 7, 2020

Major Sectors

Major sectors posted a mixed performance.

The last two weeks of the year were not kind to chemicals, mirroring their performance for the entire year as many companies faced lawsuits. The chemical sector fund (FSCHX) declined 2.76%.

Meanwhile, Vanguard’s industrials sector fund (VINAX) gained 1.36% these past two weeks.

Major Sectors Performance Jan 7, 2020

Foreign Funds

Foreign equities all posted gains.

T.Rowe’s Latin America equities fund (RLAIX) surged 2.57% for the past two weeks, gaining the spot of the top performer. The fund has seen its performance whipsawing for much of 2019 and high volatility, but ended the year up nearly 10%.

India equities fund (WIINX) was the weakest performer from the bunch, seeing a gain of just 0.22%.

Foreign Funds Performance Jan 7, 2020

Major Asset Classes

The performance of major asset classes was surprisingly close.

Managed futures fund (EVONX) was the best performers from the pack with a rise of 2.16%.

BlackRock’s small-cap mutual fund (CSGEX) was surprisingly the worst performer for the two weeks with a drop of 0.73%. The fund’s performance for 2019 remains strong, however, with an advance of 21%.

Major Asset Classes Performance Jan 7, 2020

The Bottom Line

Overall flows are again negative, with equity outflows failing to offset strong bond inflows. Technology stocks have performed well over the last two weeks for the year, along with Latin America equities and managed futures, while chemicals stocks and Indian equities continued to disappoint.

Be sure to signup for your free newsletter here to receive the most relevant updates.

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Please Enter Your Email
Please Select Your Advisor Type

Popular Articles

Download Our Free Report

Why 30 trillion is invested in mutual funds book