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.

 

• Daily new cases have continued to rise globally, although this was largely due to new outbreaks in some countries like India. The U.S., Continental Europe, and the UK have continued to see the number of new coronavirus cases go down as the vaccination process is in full swing. This has happened even as the U.S. and the UK are re-opening their economies.

• The U.S. Federal Reserve has kept its ultra-accommodative monetary policy unchanged, and signaled it is far from withdrawing its bond-buying program, despite rising inflation expectations.

• As expected, the European Central Bank has maintained its monetary policy, with the bank expecting purchases of Eurozone government bonds to increase in the current quarter compared with the first three months of the year. Some of the governing members, however, expressed concerns over whether the bank will be able to exit its coronavirus stimulus program.

• The Bank of Japan has not changed its highly accommodative monetary policy stance, even as it does not expect inflation to hit its 2% target by 2023. However, as Japan has been battling high numbers of coronavirus cases, the bank promised to consider extending its pandemic-relief program.

• U.S. GDP advanced 6.4% in the first quarter of the year compared to the prior quarter, a strong sign of output recovery in the largest economy in the world.

• U.S. unemployment claims have continued to trend down, with one million people filing for insurance in the April 29 fortnight. This is down from more than 1.2 million during the prior fortnight. However, the numbers have yet to reach pre-pandemic levels of below 200,000 per week.

• A host of services and manufacturing purchasing managers’ indexes (PMI) show the sentiment in Europe is improving. Services PMI across Europe moved into positive territory in April to 50.3 for the first time since July 2020 (anything above 50 indicates expansion). European manufacturing PMI came in at 63.3, the highest since records began in 2007.

• As Britain is slowly emerging from lockdown measures and malls and restaurants are reopening, PMIs are surging to record levels. UK’s services PMI rose from 60.4 to 63.1, the highest on record. Manufacturing PMI increased slightly from 59.1 to 60.6, also a record.

• Chinese manufacturing PMI fell from 51.9 to 51.1 in April, disappointing analysts’ expectations of 55.9. Meanwhile, non-manufacturing PMI declined to 54.9 from 56.3.

• 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 all posted gains over the past two weeks.

• Vanguard Small-Cap Index Fund (VSCIX) is the best performer this past fortnight, with a spike in performance of 1.45%, after a period of underperformance.

• Meanwhile, Vanguard 500 Index Fund (VFIAX) is the best performer with an advance of 1.45%.

• Fixed income assets showed mixed performance.

• Vanguard Short-Term Treasury Fund (VFISX) is the best performer from the pack, with a rise of 0.42%.

• Vanguard Intermediate-Term Tax-Exempt Fund (VWITX) fell 0.20%, the only faller this fortnight and the worst performer.

• Sectors have posted mixed performance.

• Vanguard Real Estate Index Fund (VGSLX) is at the top of the performance ladder, gaining 2.90% largely due to some part of the sector benefitting from the reopening of the economy.

• At the other end of the spectrum is Vanguard Information Technology Index Fund (VITAX), which lost 1.56% during the past fortnight, as investors moved into stocks that gained from the reopening of the economy.

• Foreign equities were rather mixed.

• Matthews India Fund (MINDX) is by far the best performer from the pack with a gain of 2.81%, despite the country dealing with a new spike in coronavirus cases.

• T. Rowe Price Japan Fund (PRJPX) is down nearly 4%, representing the worst performance from the pack.

• Alternative assets were all up with one exception.

• PIMCO CommodityRealReturn Strategy Fund (PCRIX) climbed 4.47%, by far the best performer.

• Cohen & Steers Preferred Securities and Income Fund (CPXIX) is the only faller this fortnight, down 0.28%.

Real estate and India equities have had a good two weeks, along with commodities. The reopening of the developed-world economies as vaccination programs speed along nicely has helped real estate stocks like offices, malls, and parts of retail. Meanwhile, technology stocks, Japanese equities, and municipal bonds have had a rough two weeks, posting notable losses. Be sure to sign up for your free newsletter here to receive the most relevant updates.

Fund returns data are for the two-week period between April 19, 2021, to April 30, 2021.