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 coronavirus cases have continued to fall globally, as vaccination programs are well underway. On June 13, the number of global cases stood at more than 300,000, a low not seen since February 2021, when the second wave was just starting. Countries are gradually opening up, although new COVID-19 variants that spread more quickly are making some nations wary of lifting restrictions too soon.

• At the G7 summit, a gathering of wealthy Western nations, leaders agreed on steps to tackle the growing influence of China, including a 100 billion euros infrastructure plan that is set to rival Beijing’s Belt and Road Initiative. World leaders also pledged a billion coronavirus doses for less developed countries in order to plug the gap between wealthy and poorer nations in dealing with the pandemic.

• The European consumer price index (CPI) advanced by 2% year-over-year in May, the first time since 2018 when inflation reached European Central Bank’s goal. The move was largely led by increases in energy prices. Core CPI was up by just 0.9%, indicating the rise in inflation is transitory.

• The European Central Bank has maintained its highly accommodative monetary policy, including its asset purchases and zero interest rate. The bank said interest rates will remain low until it sees a sustained increase in inflation.

• The unemployment rate in the European Union fell from 8.1% to 8%, the lowest level since September 2020.

• The U.S. economy added 559,000 jobs in May, nearly double that of the previous month but lower than the 645,000 economists had expected. Average hourly earnings increased by 0.5%, compared with 0.7% in the prior month, fueling expectations that inflation will continue to rise. The unemployment rate declined from 6.1% to 5.8%.

• The consumer price index in the U.S. rose to a 13-year high of 5% in May, compared to the same period a year ago, putting pressure on the Federal Reserve to tighten its monetary policy. Some of the increase, however, was due to base effects, and the number is expected to drop in coming months. Core CPI came in at 3.8%.

• U.S. manufacturing purchasing managers’ index (PMI) rose to 61.2 from 60.7, indicating high optimism among manufacturers as demand has been ramping up.

• As the U.S. economy is opening up, optimism in the services sector increased to a 16-year high of 64 in June. Analysts had expected a reading of 63.

• 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 continued to rally this week.

• Vanguard Small-Cap Index Fund Institutional Shares (VSCIX) posted the largest gain by far, climbing 2.30%.

• Meanwhile Vanguard 500 Index Fund Admiral Shares (VFIAX) is the poorest performer with an advance of only 1.08%.

• Fixed income assets recorded mixed results.

• Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) surged by 2.13%, representing the strongest performance from the pack.

• At the other end of the spectrum was Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX), which declined by 0.11%.

• Sectors were all up with two exceptions.

• Vanguard Real Estate Index Fund Admiral Shares (VGSLX) advanced by 5.21%, the best performance from the bunch.

• Vanguard Industrials Index Fund Admiral Shares (VINAX) was the worst performer with a drop of 1.15%.

• Foreign equities were all up.

• Fidelity Latin America Fund (FLATX) gained 3.13%, representing the strongest performance this week.

• Fidelity China Region Fund (FHKCH) is again the worst performer from the pack, up by just 0.35%.

• Alternative assets were all up with one exception.

• PIMCO CommodityRealReturn Strategy Fund Institutional Class (PCRIX) lost 15.84%, by far the poorest performance from the pack.

• Vanguard Real Estate Index Fund Admiral Shares (VGSLX) is the best performer, with an advance of 5.21%.

Investment grade bonds, real estate equities and Latin America shares have had a strong two-week period. Meanwhile, commodities, industrials and Chinese equities were hit hard, with all three posting big losses.

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Fund returns data are for the two-week period between May 28, 2021, to June 11, 2021.