From Morningstar: 2024-10-02 07:20:00

The third quarter of 2024 saw interest rate cuts in the UK, Europe, and the US, a UK general election, and increased geopolitical tensions. Chinese policymakers announced significant fiscal and monetary stimulus, leading to a surge in China equities. Matthews China and Redwheel China were among the top performers with over 30% returns in September.

Kristina Hooper of Invesco praises the size of China’s stimulus, suggesting it’s what investors needed. Ben Yearsley credits the US Federal Reserve’s interest rate cut for Beijing’s response. M&G launched a China fund recently, highlighting the risks of writing off markets too soon.

Precious metals equity funds performed well in Q3, mirroring geopolitical instability and stabilizing inflation. Around two-thirds of funds were up in the quarter, with the worst performer down -11%. Energy and technology funds saw losses, influenced by energy price volatility linked to increased supply fears from the Middle East.

Chinese funds dominated Q3 performance charts, with Matthews Asia Funds China and GAM Multistock – China Evolution Equity among the top-performing funds. Funds invested in China are experiencing significant gains, outperforming their benchmarks and category averages. Unpredictability remains in energy and technology funds which experienced losses in Q3.



Read more at Morningstar: China’s Back: Best and Worst Performing Funds in Q3…