Sector analysis: UK All Companies

This year has been something of a success story for the UK. The markets have gone from strength to strength as it looks as though the country is getting back into full swing.

Bank of England governor Mark Carney said a fortnight ago that the UK recovery has “taken hold” and unemployment is set to fall sooner than originally forecast. The Bank’s quarterly inflation report raised the forecast for UK economic growth for the next two years. For this year, growth is forecast to be 1.6 per cent, up from the 1.4 per cent originally predicted. For 2014, it is expected the UK economy will grow 2.8 per cent, rather than the 2.5 per cent predicted this summer.

The UK unemployment rate was reported at 7.6 per cent, down from 7.8 per cent, although the Bank has said it will not raise interest rates until unemployment falls to 7 per cent or below.

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Funds in the UK All Companies sector have been performing well. Based on an initial £1,000 investment, no funds failed to return on their initial investment.

The top performing fund comes from River & Mercantile. The £169.5m R&M UK Equity Long Term Recovery fund returned £1,603 on a £1,000 initial investment. Managed by Hugh Sergeant, the fund predominantly invests in cyclical funds, particularly consumer cyclical and financial services.

The worst performer is the Manek Growth fund, which returned £1,064. The £20.2m fund invests heavily in technology companies (31.9 per cent) and consumer cyclical firms.

The Table below shows the top and bottom five performing funds over one year as at 25 November.

Top and bottom UK All Companies funds over one year based on an initial £1,000 investment
Top 5
River & Mercantile UK Eq L/T Rec B£1,603
IP UK Aggressive Acc£1,545
Schroder Recovery A Inc£1,464
Standard Life UK Eq Unconstrained£1,455
SVG UK Focus A£1,453
Bottom 5
M&G Recovery A Inc£1,145
F&C UK Alpha 1£1,138
Scottish Widows UK Select Gr A£1,134
SWIP UK Opportunities A£1,122
Manek Growth£1,064
Sector average£1,262
Data one year to 25 November 2013. Source: Morningstar. Copyright: Money Management.