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Which funds are the Brexit winners and losers three months on?

Brexit 2

A number of Chinese funds have returned more than 30 per cent since the UK’s vote to leave the European Union, while closer to home UK property funds have seen the poorest returns over the period.

The best performing fund, the Julius Baer EF China Evolution, has returned 37.3 per cent since 23 June, according to Hargreaves Lansdown.

Meanwhile, the FTSE 100 and FTSE 250 are up 10.1 and 4.6 per cent respectively and bond markets have also performed strongly with 10-year gilts now yielding just 0.7 per cent.

Senior analyst Laith Khalaf says Chinese funds have enjoyed the “twin tailwinds” of a weakening pound and strong stockmarket performance, particularly in Hong Kong.

While the Hang Seng has returned 15.1 per cent in local currency terms, in sterling it has returned 30.1 per cent.

It was joined in the top 10 best performing funds since Brexit by five other Chinese funds, including the Henderson China Opportunities and HF China funds, as well as funds from Old Mutual, HSBC and Neptune.

The JPM Brazil Equity fund, two gold funds, and the Candriam Equities L Biotechnology rounded out the top 10.

The well-documented issues with open-ended property funds was reflected in the Hargreaves Lansdown figures, with seven included in the bottom 10 performing funds since Brexit.

Khalaf says: “Things aren’t quite as ugly in the sector as they were, though there are still trading suspensions and fair value adjustments being applied.”

Commercial property is currently trading 2.3 per cent lower.

The Kames Property Income fund was the worst performing returning negative 8.8 per cent.

However, the FP Argonaut Absolute Return was the second worst performing fund with negative 6.6 per cent.

When it comes to individual stocks, easyJet has hit investors with negative 31.8 per cent returns and has been joined by International Consolidated Airlines Group, which has returned negative 22.7 per cent.

It is the worst performer from the FTSE 100, while miners made up the best three performers with Fresnillo at 45.4 per cent returns followed by Glencore at 35.9 per cent and Anglo American at 32.5 per cent.

Holidaymakers from the UK will now pay 12 per cent more for a trip in Europe and 14 per cent more in the US, as the pound now buys €1.1669 compared to €1.3072 before the vote, and $1.3078 where it previously bought $1.4877.

Khalaf says: “The last three months have been the best of times for some sectors, and the worst of times for others.

“The share prices of banks, airlines and property funds have all been burned by Brexit, while companies with international revenue streams have enjoyed a Brexit boost.”



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