January was a strong month for equities as investors continued to look beyond the problems that had besieged markets through much of 2011.
Sterling returns of around 2.7% for the US and UK equity regions were certainly respectable for the month and continued a more positive trend that formed in early October of last year. However, the stronger equity regions this month were those of the Far East ex Japan and Emerging Markets, where the T. Bailey Growth Fund has a sizeable weighting, and which both achieved returns of 8-9% in Sterling terms.
We also noted a good deal of sector rotation taking place during the month with those areas that had struggled through 2011 and those of more cyclical nature coming back into favour at the expense of the more defensive areas. This was particularly notable for UK equity income investors which, although in the main still delivered positive absolute returns, lagged the broader market considerably. However we continue to believe that such higher quality equities on attractive yields, that typically form the bedrock of UK equity income funds deserve a place in longer-term investors’ portfolios during these uncertain times.
Elliot Farley
Commentary taken from the January 2012 T. Bailey Growth Fund Factsheet
Submitted by: Elliot Farley
Websites are all very well, but sometimes only a very knowledgeable human will do. Please leave your details, and we’ll call you back.
Request call backLearn more about our truly bespoke alternative to mainstream ACD and
fund administration
services.
The value of your investment and the income derived from it can go down as well as up, and you may not get back the money you invested. When investing in retail unit classes, capital appreciation will be affected by the impact of initial charges and you should therefore view your investment as a medium to long-term holding.