Best-Performing Mutual Funds and Mutual Funds in January: Seraphim Space in the lead
The Seraphim Space Investment Fund soared to new heights in January, making itself the best-performing mutual fund of the month as its returns rose 49.4 per cent.
The fund, which invests in early-stage space technology companies, reversed its losses in the latter part of 2023, which saw it go bankrupt. Share the price It decreases by about half.
The fund’s shares have been relatively volatile, also falling in July 2023.
James Carthew, head of investment firms at QuotedData, told This is Money: “The Seraphim Space Trust share price has been extremely volatile, reflecting the relatively small number of shares actively trading as most investors at launch were in it for the long term and happy to sit back.” .
Shares of investors in early-stage space technology ventures rose in January
Seraphim’s strength comes despite the failure of Satellite Vu’s HotSat-1 climate satellite, which Seraphim helped the company raise money for, after just six months in orbit.
Carthew noted that this news was mitigated somewhat by the satellite’s insurance protection.
Other better-performing mutual funds include Foresight Sustainable Forestry, which saw its returns grow to 27.05 per cent in January.
“Growth-style investments have performed better since it became clear that interest rates will peak in October 2023,” Carthew said.
“January appears to have been the month investors went bargain hunting, as many out-of-favor credit funds rebounded strongly.”
Uranium-focused Geiger Counter also saw a strong return of 14.07 percent.
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When it comes to finance, the Technology and North America categories were the strongest sectors.
“These two things are so intertwined that they distort the picture of US stocks,” said Ben Yearsley of Fairview Investing.
Technology-based funds achieved an average return of 4.81 percent, while the North American funds sector grew by 3.04 percent.
Technology-focused Oxeye Hedged Income and North America-focused Axiom Concentrated Global Growth both achieved growth of more than nine percent.
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“The US market has continued to perform well on the back of encouraging economic data. Inflation continues to ease, but the economy still looks healthy – employment is holding up and there is no sign of recession,” said Matthew Reid, QuotedData’s senior analyst. For now – which gives the Fed room to cut interest rates.
Financial funds also achieved strong growth of 2.4 percent in January.
Funds based in Japan and India also featured in the top five performing funds, growing in value by 2.38 per cent and 1.81 per cent respectively.
Jupiter India returned 8.74 per cent in January, while Jupiter Asset Management, a Jupiter India Select fund, also returned 8.27 per cent.
Nomura Japan Strategic Value Co. was also among the top ten performing funds, returning 8.21 percent.
At the other end of the spectrum, Chinese funds proved the weakest in January in a “very disappointing start to 2024,” according to Yearsley.
“According to many fund managers, Chinese stocks have not been that cheap compared to broader emerging markets,” he said.
The worst performer was Redwheel China Equity, which returned -16.96 percent.
Baillie Gifford China; JPM China; Guinness China A Share and Matthews China Smaller Companies both found their way into the top 10 worst-performing companies, achieving returns of -13.42 percent, -13.18 percent, -12.66 percent, and -11.87 percent respectively.
The decline in China is largely due to the faltering real estate sector, which makes up a quarter of the country’s economy.
The Chinese economy is suffering due to the liquidation blow of giant developer Evergrande
Chinese development giant Evergrande It was recently forced into liquidation It faces $300 billion in debt, while fears are growing that fellow real estate company Country Garden will be the next to collapse.
“China appears to be unable to escape its doom loop – Beijing needs a major explosion to pull markets off historic lows,” Yearsley said.
At the same time, climate-related funds also suffered, continuing their decline for six months.
Baillie Gifford Climate Optimism found itself facing a somewhat pessimistic forecast with a return of -16.75 percent.
Likewise, Active Solar faced returns of -16.68 per cent, while GMO Climate Change Select and GMO Climate Change Investment were also among the worst performing funds, with returns of -12.31 per cent and -11.85 per cent respectively.
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(Signs for translation) Daily Mail