Funds in the Japanese Smaller Companies sector were the best performing in June, according to Lipper.
The sector average return was 6.54%, compared with the next best performing sector, Sterling Corporate Bond, which returned 3.28%.
The Neptune Japan Opportunities fund continued its strong performance and was the best performer overall for the month, gaining 11.42% for investors. There were two other Japanese funds in the top five—Axa Framlington Japan Smaller Companies and M&G Japan Smaller Companies. Others in the top five performers included Axa Framlington Biotech and Aegon Sterling Corporate Bond.
Richard Ramyar, Lipper’s head of research for Britain, says: “In the face of Japan’s export woes, the Japanese Smaller Companies sector is one of the rare equity sectors that have achieved positive 12-month performance (7.05% return). Valuations in Japanese small caps impressively remain downtrodden and there remains much potential upside in the long-term. Investors are asking themselves whether a sustainable Japanese resurgence of some kind will really make it this time.”
The Europe ex UK sector was the worst performing sector in the month, losing 3.58% of capital whilst the CF Ruffer Baker Steel Gold fund suffered the largest losses overall (10.66%).