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 risen slightly over the past two weeks, as many countries lifted lockdown measures and the so-called Delta variant has been spreading faster, only stopped by a strong pace of vaccinations. Some countries are mulling the delay of full lockdown exits, while cross-border travel remains problematic.

• The UK consumer price index rose 2.1% in May year-over-year, up from 1.5% in the prior month but below analysts’ expectations of 1.8%. Core CPI, which excludes volatile food, energy, and alcohol items, rose 2% compared with 1.3% in the prior month.

• The Bank of England kept interest rates unchanged at a historic low of 0.10%, dismissing inflation fears by saying the rise in consumer prices is transitory. The bank has maintained its bond-buying scheme at 895 billion pounds.

• China’s retail sales grew by 12.4% in May compared to the same month last year, while industrial production climbed by 8.8%. Both were below expectations of 17.7% growth and 9.8%, respectively.

• The U.S. Federal Reserve has left interest rates unchanged, but raised its inflation outlook for this year and provided details about when the policymakers expect to raise interest rates. The plot of policymakers has shown that the Fed expects to make two rate increases in 2023. The Central Bank also increased its inflation projections for this year to 3.4% from 2.4% at the last meeting. Previously, the Fed had said the rise in inflation was transitory.

• The Bank of Japan has left interest rates and its asset purchase program unchanged and said it expected a massive rebound in consumption as households start spending savings accumulated during the pandemic.

• European manufacturing purchasing managers’ index (PMI) remained flat near record levels of 63.1 in June, beating analysts’ expectations of 62.4. European services PMI is in positive territory for the third month in a row at 58, as optimism was boosted by the lifting of some pandemic restrictions in most countries.

• Meanwhile, U.S. manufacturing PMI broke a new record in June, rising from 62.1 to 62.6. U.S. services PMI declined from 70.4 to 64.8, still the second-highest reading since records began in 2014.

• U.S. unemployment claims rose slightly over the past two weeks to more than 800,000, versus below 800,000 in the prior fortnight.

• 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 these past two weeks, with one exception.

• Vanguard Small-Cap Index Fund Institutional Shares (VSCIX) was the only loser from the pack, down 0.16%. The fund was the best performer in the prior fortnight.

• Vanguard Russell 3000 Index Fund Institutional Shares (VRTTX) is the best performer, with an advance of 0.92%.

• Fixed income assets were mostly down.

• Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX), Vanguard High-Yield Corporate Fund Investor Shares (VWEHX), and Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) all recorded flat gains.

• Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares (VWITX) fell 0.47%, representing the worst performance from the pack.

• Sectors were mostly down.

• T. Rowe Price Communications & Technology Fund Investor Class (PRMTX) gained 3.78%, the best performance by far.

• At the other end of the spectrum is *Vanguard Real Estate Index Fund Admiral Shares (VGSLX) with a loss of 4.79%. The fund was the best performer in the prior fortnight.

• Foreign equities have shown mixed performance.

• Fidelity Latin America Fund (FLATX) gained 1.94%, the strongest performance for two fortnights in a row.

• Vanguard European Stock Index Fund Admiral Shares (VEUSX) was the worst performer with a decline of 2.54%.

• Alternative assets were all down with one exception.

• Cohen & Steers Preferred Securities and Income Fund, Inc. Class I (CPXIX) is the only gainer from the pack with an advance of 0.21%.

• PIMCO CommodityRealReturn Strategy Fund Institutional Class (PCRIX) is the worst performer, declining nearly 3%.

Communications and technology shares, as well as Latin America, were among the few gainers these past two weeks. Meanwhile, commodities, European equities, and small-cap stocks were the biggest losers.

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Fund returns data are for the two-week period between June 11, 2021, to June 25, 2021.