MutualFunds.com 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.

 

• The U.S. and the UK are seeing steady drops in the number of new coronavirus cases, as vaccination efforts progress well. Continental Europe is also seeing declines, partly due to vaccination schemes and lockdowns. However, India has been experiencing an abrupt increase in new cases, prompting the government to institute broad lockdowns.

• The U.S. Federal Reserve has signaled the easy money policy that has been in place since the pandemic hit will remain unchanged for the foreseeable future and will not be adjusted based on forecasts. The Fed strongly indicated that it will not tighten monetary policy until there is strong employment and inflation.

• In Europe, the European Central Bank’s minutes showed policymakers were rather worried about the slow progress of vaccination efforts in the Eurozone. They agreed this added a layer of uncertainty over future economic growth as more lockdowns are a possibility.

• U.S. inflation is picking up, raising concerns that the Fed might be caught wrongfooted. The U.S. consumer price index has risen 2.6% over the past 12 months as of March, largely due to increases in energy commodities like gasoline and fuel oil. Month-to-month, inflation was up 0.6%, higher than analyst expectations of 0.5%.

• Unlike the U.S., inflation in Europe is still well below the Central Bank’s target. Europe’s consumer price index rose 1.3% in March year-over-year, an improvement from the 0.9% figure in the prior month. Core CPI rose 0.9%.

• U.S. retail sales jumped 9.8% in March, the strongest gain since June 2020, when there was a strong recovery from the COVID-19 drop. Core retail sales rose 8.4%, crushing analyst expectations, which were already high at more than 5% growth. The strong recovery was partly due to the U.S. reopening its economy.

• The number of U.S. unemployment claims filed for the April 8 week declined from 769,000 to 576,000, the lowest number since COVID-19 hit, in a sign that the U.S. economy is recovering strongly.

• 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.

• U.S. equities have posted gains over the past two weeks.

• Vanguard 500 Index Fund (VFIAX) was again the best performer from the pack with an advance of 2.7%.

• At the other end of the spectrum, Vanguard Small-Cap Index Fund (VSCIX) was the worst performer, appreciating just by 1.4%.

• Fixed income assets were all up with one exception.

• Vanguard Long-Term Investment-Grade Fund (VWESX) continued its gains from the prior two-week period, gaining 1.22%, by far the strongest performance.

• Investors in Vanguard Short-Term Treasury Fund (VFISX) were not as lucky. The fund posted flat gains.

• Sectors have all posted solid gains.

• Vanguard Information Technology Index Fund (VITAX) climbed 3.8%, adding to the more than 4% gains it registered in the prior two-week period.

• Meanwhile, Vanguard Energy Fund (VGENX) reversed its gains this week, up 1.1%, although this was the weakest performance.

• Foreign equities were rather mixed.

• Fidelity Latin America Fund (FLATX) gained more than 5%, after posting losses last time.

• Matthews India Fund (MINDX) shares the title of the worst performer from the bunch with Fidelity China Region Fund (FHKCH), both assets down 1.04%.

• Alternative assets were all up.

• PIMCO CommodityRealReturn Strategy Fund (PCRIX) advanced 4.8% for the past two weeks, representing the best performance.

• Meanwhile, PIMCO Emerging Markets Currency and Short-Term Investments Fund (PLMIX) rose just 0.6%, the worst performer.

Equities have continued to post gains this week, with all indexes up. Information technology shares, investment-grade bonds, and commodities have largely outperformed. Meanwhile, Chinese and Indian shares underperformed along with short-term Treasuries.

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Fund returns data are for the two-week period between April 2, 2021, to April 16, 2021.