Morning Round-Up: UK construction falls, Italian economy stagnates, China figures slow

Miranda Wadham
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Morning Round-Up: UK construction falls, Italian economy stagnates, China figures slow

UK construction output falls in June, referendum has little ‘impact’

Construction output fell in by 0.7 percent in June compared with the first three months of the year, according to the latest survey by the Office for National Statistics.

The figure comes in lower than the preliminary number of 0.4 percent released in July, with output falling considerably further in June than May. The period mainly covered the run-up to the referendum, but suggests that there is “very little anecdotal evidence” to suggest the referendum has had an impact.

The ONS construction figure is a short-term indicator of construction output by the private sector and public corporations within Great Britain and is produced from a monthly survey of 8,000 businesses.

Italian economy stagnates in second quarter

The Italian economy flatlined in the second quarter, after seeing promising growth of 0.3 percent in the first.

Before this reading the Italian economy had grown for five straight quarters, but fell over the last three month due to a lack of domestic demand.

With an Italian banking crisis in full swing, these economic figures are the latest in a series of worrying problems for Prime Minister Matteo Renzi, whose leadership rests of maintaining the support of the population ahead of a constitutional reform in October.

Latest data suggests China slowdown

Further economic data from China, released today, suggests an ongoing slowdown in the world’s second biggest economy.

Industrial output expanded 6 percent in July, hit by severe flooding and hot weather, with retail sales rising just 10.2 percent – below the 10.6 percent forecast. This matches trade data released earlier this week, suggesting further economic slowdown.

12/08/2016

This is what happened last time all three US indices hit record highs

Miranda Wadham
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This is what happened last time all three US indices hit record highs
Oil and retail stocks pushed all three major US indexes up to record highs yesterday, for the first time since 1999. Strong retail earnings sparked the rise, with US department store Macy’s seeing shares rise 17.1 percent after posting impressive quarterly profits. Nordstrom’s and Dillard’s both rose over 7.5 percent, with Kohls up 16 percent. The Dow Jones soared 117.8 points, with the Nasdaq up 23.8 points. The S&P 500 rose 0.5 percent to hit its ninth record close of the year. However, investors shouldn’t get too excited – last time this happened the immediate aftermath was a sell-off of 10 percent over the following month, and over 45 percent over the following three years.
chart
S&P 500 1999 – 2003
12/08/2016

Startupbootcamp still believes in UK FinTech start-ups

Katy Fleiner
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Startupbootcamp still believes in UK FinTech start-ups
June’s Brexit vote raised worries that the UK capital may lose its position as leader in the FinTech industry and innovation. However, the Startupbootcamp believes in the growth potential for UK based FinTech start-ups. Six of the nine FinTech innovators chosen to participate in its 2016 London accelerator scheme are UK-based companies. Startupbootcamp started in 2010 in Copenhagen as a supporter of rising entrepreneurs and their start-ups. After only two years the Startupbootcamp network had grown to the European level and offered five support programs for start-ups to participate in. It has over the past six years grown a global network of entrepreneurs. Currently it is Europe’s biggest, as well as the world’s third largest start-up accelerator. It now offers 15 different programs in various start-up industries such as FinTech, FoodTech and Digital Health. Its FinTech Accelerator London 2016 will start on the 5th of September. Nearly 400 companies from 61 countries applied to participate. Six out of only nine chosen start-ups are based in the United Kingdom.

The six UK FinTech start-ups chosen for the programme are:

EuropeOne: A mobile bank aimed at Europeans working in Europe, outside their home country. Kyolab: A business which monitors and archives instant messaging apps such as WhatsApp or WeChat for regulated institutions, which can help them to avoid fines. moBILLity: The business is working on an app which helps its users manage their bills by integrating all of them on one platform, tracking them and comparing them with offers from other service providers. Monuva: A global payment platform which aims to make international transfers easier and cheaper by offering low and transparent currency rates to individuals and businesses. Zenith One: A robotic financial advisor which interviews its’ customers to propose strategies. Zeroflows: An information platform which allows which allows customers to scan emerging and ‘frontier’ markets for liquidity.

The other chosen FinTech start-ups to participate are:

Enterprise Bot, India: A company which creates automated response systems for businesses which are programmed to behave like humans when responding to customer queries. Penta Bank, Germany: A new digital bank hoping to launch in Germany in spring 2017. Trakti, Italy: A online platform which assists businesses in closing deals with clients, partners and suppliers. The chosen FinTech start-ups will receive funding of €15,000 each, as well as mentoring, free London office space and access to a global network of investors and venture capital firms. While the overwhelming majority presence of UK FinTech start-ups managing to secure a spot on the program does not prove that the UK will preserve its reign over the FinTech industry in a post-Brexit environment, it does show that the global community still has confidence in the ability of UK businesses to lead innovation and performance growth in the sector. 
Katharina Fleiner 11/08/2016

CrowdCube raises over £6.8 million in campaign on own platform

Katy Fleiner
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CrowdCube raises over £6.8 million in campaign on own platform
One of the most popular UK crowdfunding platforms, CrowdCube, has managed to exceed its target amount of £5 million in its latest crowdfunding campaign launched on its own platform. With five days to go, the campaign has raised £6,845,400 from 3411 investors. The new funds will go towards expanding the company’s market position in the UK, focusing on expanding on equity crowdfunding.
CrowdCube commented:
“We want to dominate the UK equity investment market for private companies, estimated to be worth £5.3 billion, and become the partner of choice for investors and ambitious high growth companies.” CrowdCube launched its online platform in 2011. It has since raised more than £160 million in more than 400 successful campaigns. Currently it has over 285,000 registered members. 115,000 new members joined in the last year alone. CrowdCube said it is expecting the number of registered members to increase to 500,000 by 2017. New software products “to enable businesses to manage their investors more efficiently and give investors greater transparency on how their investments are performing” are also in planning. CrowdCube has been the platform for well-known success stories for crowdfunding. The Scottish brewery BrewDog’s four ‘Equity for Punks’ campaigns, launched on CrowdCube, broke two world record in crowdfunding. BrewDog became the first company to raise as much as £26 million in total equity crowdfunding. Its’ latest round also become the first scheme to raise more than £5 million in less than three weeks. CrowdCube itself has received a large following in backers. More than 570 private investors gave over £3 million in various crowdfunding rounds. It is also largely supported by Balderton Capital – one of the largest European venture funds, Numis – a leading UK stockbroker and corporate advisor and Draper Esprit – “one of Europe’s most experienced venture capital investors”. 
Katharina Fleiner 11/08/2016

10 UK Tech start-ups to watch in 2016

Katy Fleiner
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10 UK Tech start-ups to watch in 2016
We had a look at 10 UK Tech start-ups which could make some waves this year.

1. Darktrace

Darktrace is a UK cyber security firm founded in Cambridge in 2013 which developed the world’s first operational Enterprise Immune System detecting emerging cyber-threats, giving companies the opportunity to defend against in-progress cyber-attacks. The business reports that, since its’ foundation, revenues have grown by 600 percent year-on-year. In 2016 Darktrace won a product award at the Info Security Global Excellence Awards. But above all else, Darktrace made our list of 10 UK Tech start-ups to watch after doing exceptionally well since the UK’s decision to leave the European Union in June. The Financial Times reported that Darktrace has attracted more funding than any other UK start-up in the month after the Brexit-vote, raising $65 Million. Darktrace is currently valued at $400 Million and has global offices in Cambridge (HQ), San Francisco (HQ), New York, Auckland, London, Milan, Mumbai, Paris, Seoul, Singapore, Sydney, Tokyo, Toronto and Washington D.

2. Seedrs

Seedrs is an equity crowdfunding platform, headquartered in London, which launched in March 2009. What sets the platform apart from other popular crowdfunding sites such as Kickstarter is that it offers backers monetary returns on the company shares they invest in. It also allows users to invest as little as £10 to buy a stake in a company they want to support. The company is currently valued at £11.3 million, up 288.26 percent from the previous year, according to CompanyCheck and recently announced that over £100 million had been invested through their platform. On its advisor board sit well-known business personalities such as Logan Gree, CEO of Lyft, Mike Butcher, Editor-at-Large at TechChrunch and – since June last year – tennis pro Andy Murray.

3. Rentify

The four-year-old proptech start-up offers landlord tools for effective and simple property management, as well as providing other rental-focused services. Last year the company raised £5.5 million and added close to £1.4 million earlier this year in a crowdfunding campaign on Crowdcube. Its biggest backer is currently the London venture capital firm Balderton Capital – currently, the business is valued at £413.9k In February last year the team at Rentify was joined by former head of strategy and initiatives at Google, Roxanna Zea, who acts as chief operating officer.

4. Mondo

The London fintech start-up was founded only last year. Its CEO and co-founder, Tom Blomfield, co-founded the online direct debit provider GoCardless, another one of the many recent successful UK Tech start-ups, but left the business in 2013 to build Mondo. Mondo is creating a branchless bank using a debit card system connected to a mobile app. The cards are controlled by the app which allows users to easily access all information and purchases. Although the company has not yet fully launched, the proposition sounds promising and a version of the new card has been launched to Alpha testers already. So far, the business has already raised £7.2 million to fund its idea.

5. Divido

Divido aims to help customers pay for their goods by allowing people to pay for anything they buy in instalments over a one to five-year period, using an phone-based app. The service aims to fill a market niche – most people are unaware that smaller businesses offer payment plans. Using the app, businesses are paid in full right away but Divido charges customers an initial and monthly fee to allow them to split the cost over a longer period of time. Over 100 on and offline retailers have so far signed up to the service. Most operate in the furniture, bike and music retail sector but other areas include funeral services, fashion, healthcare and education. The service supports by well-known e-commerce platforms such as Shopify and Magneto.In 2015 it received the title ‘European Innovator of the Year’ by InnoPitch (European Commission & European Parliament). For 2016 the team at Divido has an ambitious expansion plan on the go. It aims to quadruple its turnover and double its team size – currently just 11 members.

6. Enigma Recovery

Enigma Recovery is a fast growing data recovery start up. Its team creates software such as data recovery and deletion programs for smart devices. Their service is currently available for IOS as well as Android systems and other storage devices such as SD cards. In March this year it moved its’ offices to 30 St Paul’s Square, a prime London location, motivated by a growth in staff numbers. The UK tech start-up is backed by global companies such as Kaspersky Lab and Mangrove Capital and has plans to expand on an international scale in the soon future.

7. LendInvest

LendInvest is a three-year-old peer-to-peer property lending platform. The business currently takes the number one spot on the Startups 100 2016 index for most promising UK start-ups. The business idea is to connect investors, who are seeking new opportunities, with property entrepreneurs looking for short-term mortgage finance. LendInvest vows that it can process an application for funding in as little as two weeks, while current waiting times at high street lenders are around three months. A year ago the company scored one of the biggest UK investments of the year. Beijing Kunlun, a Chinese technology firm invested £22 million in one of the most promising UK Tech start-ups. Its current net worth stands at £993k, according to CompanyCheck, up 894.4 percent from the previous year. The business has announced that it is intending to increase its staff headcount from 90 to 150 by the end of this year.

8. Hubble

Hubble is a UK start-up aiming to help other UK start-ups. It aims to connect companies, which currently have an excess in workspace in their offices, with small businesses in search of affordable and flexible office space in the UK capital, with the help of an online platform. It charges a 5 percent fee of monthly rents on any successful deal, while big companies profit from monetising currently unused space and helping other start-ups find a place to begin their work. WeWork, The Office Group and Regus, as well as companies such as Funding Circle, GoCardless and Songkick are some of the well-known users of the service so far. Hubble recently secured the second place in the ‘Rising Star of the Year’ category at the Startups Rewards. This year, Hubble is hoping to increase its funding, having already successfully raised £500,000 from ‘angels’ such as James Caan and Brett Akker. Its’ goals are to double its’ 11-member-strong team size and expand its’ office space inventory.

9. PensionBee

The Fintech start-up launched by former Goldman Sachs and Morgan Stanley financial professional, Romi Sacoca, is an online pension manager which helps young to old work professionals who have changed jobs once or more manage their pensions online through one of three of PensionBee’s pensions plans. Since the new Workplace Pensions Reform came into effect this year, pensions are a more widely discussed topic and how to easily manage pensions is a question on many peoples’ minds. PensionBee came into the industry at just the right moment and is working with the well-known global investment managers State Street and BlackRock. At the start of the year the company aimed to expand its eight-member-strong team to 17, a goal which has already been achieved. The company is hoping to accumulate 3,000 new customers this year and offer new and ‘exciting’ product improvements.

10. Elliptic

Elliptic is a promising three-year-old Fintech start up aiming to eliminate the dangers of digital currency transactions. With bitcoins currently undergoing a fast-paced increase in importance around the world, while its security and issues are still highly debated, blockchain technology has become an increasingly valuable investment opportunity. Blockchain is the permanent public ledger which records bitcoin transactions. Elliptic uses Blockchain to identify and any illegal activity for leading Bitcoin companies, financial institutions as well as law enforcement. This year the business received an additional $5 million in Series A equity funding by the end of March to expand its services, bringing the total funding amount over to $ 7 million in three campaign rounds of equity funding (excluding funding from round one as amount was not disclosed). Elliptic gained the title “Top Disruptive Start Up” by The Times in January 2016 and reached the Top 10 Global Emerging Star on the KPMG Fintech 100. In 2015 it won the Security Project of the Year Award (The Banker), as well as the Swift Innotribe Growth Stage Startup Competition. The company is valued at £978,000 according to CompanyCheck, and has been able to expand its services into the US. 
Katharina Fleiner 11/08/2016

Earnings season 2016: winners and losers

Miranda Wadham
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Earnings season 2016: winners and losers
Winners: Lloyds Banking Group (LON:LLOY) A surprise winner of the summer earnings season, Lloyds Bank saw a 101 percent increase in post-tax profit to £1.8 billion – an impressive contrast to the dismal figures provided by other British banks. However, the stock is still down 25 percent on the year, hitting a one year low in the weeks after Brexit. Just Eat (LON:JE) A relative newcomer to the scene, revenues at fast food delivery service Just Eat soared 59 percent to £171.6 million over the last quarter. Underlying EBITDA rose 107 percent to £53.4 million, helped by a 55 percent increase in order numbers. Just Eat’s CEO David Buttress called the figures a “strong start” to the year. Domino’s Pizza (LON:DOM) Growth shows no signs of slowing at pizza takeaway chain Domino’s – revenues climbed 12 percent over the fiscal second quarter versus the the year before. The group has benefited from higher supply chain revenues, increased volumes and store growth. However, the international company took a big hit after Brexit, with their share price dropping from 1,029 pence per share to 323.40 – recovery since has been slow. Losers: Barclays (LON:BARC) Barclays had a disappointing quarter, reporting a 23 percent fall in post-tax profit. Underlying profit before tax fell 4 percent, with the net operating income falling a further 11 percent. Royal Bank of Scotland (LON:RBS) Seven years of restructuring efforts have yet to see any real positive effect – this season RBS reported a £2 billion loss, making it one of the worst performing British high street banks. RBS shares are down 37 percent since the start of the year, after being hit further by the outcome of the EU referendum in June. Vodafone (LON:VOD) Whilst the loser list could be made up entirely of British banks, for the sake of variation we have included telecoms provider Vodafone. Group revenue fell 4.5 percent, with the internet arm being hit particularly badly – broadband subscriber additions slowed to 1,000 due following tariff changes. However, despite Vodafone shares having a rocky six months, they have climbed steadily since their low point in February. 
11/08/2016

Company reports: Old Mutual down, TUI up, Pagegroup mixed

Miranda Wadham
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Company reports: Old Mutual down, TUI up, Pagegroup mixed
Old Mutual shares fall Troubled financial services provider Old Mutual reported a nine percent fall in first-half operating profit this morning, ahead of its possible business break-up. First half operating profit fell to £709 million, coming in below analysts’ expectations. The firm cited “an uncertain environment” as a reason for the results, which they said “may lead to further challenges.” The company is currently in the process of splitting into four separate companies; however, this may well be delayed by the current investigation into Old Mutual by the Financial Conduct Authority over the treatment of its insurance customers. Shares slipped nearly 6 percent this morning, falling to 212.30 (1056GMT). Strong demand keeps TUI on track TUI Group has seen demand remain high despite the effect of Brexit on sterling, staying on track to meet its profit target. TUI has confirmed that it will deliver underlying profit growth of around 10 percent for the year ending September 30th, thanks to strong demand for Spanish and long-haul holidays. “There’s been a very strong performance from the UK, bookings have risen very strongly,” said CEO Fritz Joussen. TUI AG has seen shares rise 3.54 percent to 1,047.00 (1101GMT). Page Group share sink despite strong profits Recruitment agency Page Group saw shares drop this morning despite reporting a 6.5 percent rise in first half gross profit. Page Group reported a £299.2 million gross profit for the first half of the year, with pretax profit also rising by 16 percent. However, the company took the opportunity to warn on the longer-term effects of the Brexit vote, saying that the future was uncertain. Shares in the company shot up at market open but have now sunk 1.37 percent to 345.60 (1106GMT). 
11/08/2016
 

Morning Round-Up: UK housing slows, Muslim women ‘disadvantaged’ by employers, Steinhoff ups Poundland bid

Miranda Wadham
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Morning Round-Up: UK housing slows, Muslim women ‘disadvantaged’ by employers, Steinhoff ups Poundland bid
Housing market slows in wake of Brexit Brexit has had a negative effect on the housing market, according to the latest survey by the Royal Institution of Chartered Surveyors which has showed a significant slowdown in house price rises. New buyer enquiries and home sales both fell over the three months to the end of July, with houses seeing price increases dropping to their lowest level in three years. However, the survey suggests the slowdown may be short-lived – 23 percent of surveyors expect prices to rise in the next 12 months, although many expect the growth to be modest. Muslim women at risk of “unconscious bias” from employers Muslim women are more than three times likely to be unemployed and searching for a job than the rest of the female workforce, according to the Women and Equalities Committee. MPs have urged the government to tackle this issue, which is apparently being seen by employers as one of the last forms of “acceptable” discrimination. Unemployment in the Muslim community in general is more than double that of the population overall, at 12.8 percent. The Commons report call for further measures to be taken to prevent discrimination during employment procedures, including “name blind” applications. Steinhoff increases Poundland offer South African company Steinhoff has raised its bid for British chain Poundland, calling the revised offer “final”. The new offer values Poundland at £610 million, over £10 million more than their previous offer. The deal comes as part of Steinhoff’s attempt to increase its exposure in Europe after an unsuccessful attempt to takeover Home Retail Group. Poundland shares are currently down 0.89 percent at 222.00 (1010GMT). 
11/08/2016

BrewDog ‘Equity for Punks’ campaign launches new $50 Million bid in the US

Katy Fleiner
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BrewDog ‘Equity for Punks’ campaign launches new $50 Million bid in the US
Scotland’s largest independent brewer, BrewDog, has launched a new equity crowdfunding campaign, asking its fans in the United States to contribute $50 Million for its plan to enter the US market.
BrewDog confident it will beat its’ own set crowdfunding world record
BrewDog, which produces the UK wide popular Punk IPA, currently holds the world record in equity crowdfunding. In four UK ‘Equity for Punks’ campaigns it raised over £26 million ($35 Million). Its latest campaign missed its target of £25 million but, with a total of £19 million raised in just one year, the campaign broke further records, becoming the first crowdfunding scheme to raise over £5m in under three weeks. The company is now attempting to break its own set records by raising $50 million (£38.29 million) from its US followers in only six months.
Investors can purchase as little as two shares at $47.50 each
On offer are 1,052,632 shares of Common Stock at $47.50 per share, with investors having to purchase as little as two shares. All investors will also benefit from lifelong discounts on Brew Dog Products as well as an invitation to the annual general meeting. The US campaign will sell off a fifth of the new BrewDog USA Inc., which will be valued at $250 Million, to US investors. The rest remains owned by BrewDog and the 46,000 crowdfunding investors of previous UK campaigns meaning that UK backers will benefit greatly from the planned expansion into the vast US market.
BrewDog said:
“No other business worldwide, let alone a brewery, has acquired so many investors and capital in this fashion. This American equity crowdfunding round marks an unprecedented move by any small business, with BrewDog set to further pioneer its audacious new approach to community-fuelled business in the USA.”
Campaign is ambitious but founders are confident in success
The new campaign is of course very ambitious, especially considering that the Scottish brewery so far only has a very niche following in the United States. However, its first US brewery it already announced to open in Columbus Ohio late this year and first brews are expected by November. The 100,000 square foot space will feature a restaurant, taproom, retail space, visitor centre and beer garden for all beer lovers.
Co-Founder James Watt stated that the companies approach is all about forming a community and connecting people who love beer:
“It is about taking beer lovers on this amazing journey with us. […] It is about working together to build something we can all be proud of. In 2010, we tore up convention, turned the traditional business model on its head and launched Equity for Punks, giving thousands of people a front row seat to the craft beer revolution in Europe. Now, we are coming to America. We are combining Europe’s leading brewer with the world’s biggest craft beer market. Expect fireworks.” The new US operations will be the first separately managed expansion of the business. UK operations so far manage 44 bars worldwide in ten countries including its’ home country Scotland, Brazil and Tokyo. So far BrewDog reported that the campaign has already gone beyond “more than $1 million in indication of interest in the first three days since going live on BankRoll”. More than 1200 individuals have registered their interest in investing in the US launch. While this is an encouraging start, the brewery has a long way to go to reach its target in only six months. 
Katharina Fleiner 10/08/2016

Top 10 best performing funds this year

Katy Fleiner
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Top 10 best performing funds this year
We had a look which are the ten best performing funds in the first seven months of 2016. Gold funds are storming the top ranks this year on the back of rising gold prices.

No.10: BlackRock GF World Mining

The world’s biggest mining fund, aiming at investing at least 70% of its assets in shares of companies involved in mining and/or production of base and precious metals as well as minerals, has to date recorded 78.6% growth in total returns this year, in its ‘D2 USD’ share class. This comes after the fund saw 5 consecutive years of losses. Last year saw the fund fell by 37.5%. As of the end of May this year the fund manages US$4,063.2 Million (£3,125.3 million) in Assets. It’s top three holdings by weight currently are in BHP Billiton PLC, Randgold Resources Limited, Rio Tinto PLC (from top to bottom). Although the CIO of the Natural Resources Team at BlackRock and fund manager of BlackRock GF World Mining, Evy Hambro, warned that “2016 could be shaping to be another tough year for producers of natural resources”, the fund has managed to reach this year’s top ten ranking for best performing funds.

No.9: HSBC Global Investment Funds Brazil Equity

The sub-fund of Luxembourg based HSBC Global Investment Funds has so far managed to increase total returns by 84.1% in its ‘AC NAV USD’ share class since the start of 2016, after this fund class declined 43.2% the previous year. The fund as of 30th June manages US$379.85 Million. It aims to invest in equity shares in Brazilian companies of all sizes. The largest share of its assets – around 30% – is currently invested in the financial industry. Consumer staples (13.72%) and industrials (12.52%) are the next favoured sectors. Its three top holdings by weight, top to bottom, are currently Ambev SA, Itausa-Investmentimentos ITAU-PR and 3 Petrobras – Petroleo BRAS-PR.

No.8: SF Peterhouse Smaller Companies Gold

The small UK based fund manages £2.9 million as of the 9th of August 2016. This year it has so far been able to report on 113.2% growth in total returns. The fund, which started two years ago saw a change in management in January this year and under new managing director Amanda Van Dyke turned around 5 years of losses to reach a top-ten performance spot in its year to date performance. At least 80% of its core investment assets are invested in companies involved in the gold industry while a further 20% can be invested in shares of metal mining companies more broadly. Currently it is highly invested in Canadian equities (around 37% of total holdings) as well as UK equities (around 33% of total holdings). It also invests in American equities and the money market. Its top three holdings, top to bottom, are Rye Patch Gold CORP, Kinross Gold and Osisko Mining INC.

No.7: CF Ruffer Gold

The fund, which managed to reach its first green figures in five years last year, has in the first 7 months of 2016 extended it’s growth, recording year to date total returns up 121.7%, compared to 12.1 at the end of 2015. After a performance high in mid-June, the fund, like many other investors in Gold, saw a four-year performance drop but has since then started to recover. By the end of June this month the fund managed £730.6 Million, which are principally invested in mining companies focusing on gold and other precious metals. The fund has invested heavily in the mining industry on Africa (33% of holdings). The two next biggest investment regions are Australia (20% of holdings) and North America (18% of total holding). Of a total of 105 holdings in 83 companies its biggest stock holdings, top to bottom, are Endeavour Mining, AngloGold Ashanti and Kinross Gold.

No.6: Black Rock Gold and General

Another fund managed by Evy Hambro made it into the top ten listing. Black Rock Gold and General so far expanded total returns as much as 131.6 in their ‘D Accumulating’ shares class after recording an 18.1% reduction the previous year. Latest figures recorded yesterday, the fund manages £1,567.0 Million (US$2,037.3 Million). The fund primarily invests in companies which derive a significant proportion of income from either the gold mining industry or from other precious metals but is flexible to invest in outside opportunities when it sees fit. It is currently most highly invested in Randgold Resources Limited, Newcrest Mining LTD and Newmont Mining Corp.

No.5: Old Mutual Blackrock Gold & General

Outperforming the considerably larger Black Rock Gold and General by 1.3% this year to date, the fund under same management reached the top 5 best performing funds since the start of 2016 with growth to date of 132.9%. Like many others in the top ten lists its current success comes from its predominant investment in the gold industry as well as other precious metals which are performing increasingly well this year after years of lower than hoped results on earnings per share. Moneyobserver rated the fund as the third best performing fund since Brexit at the end of June pointing towards gold as a save heaven in time of new economic uncertainty. The fund manages a total of £40.31 million, over half of which (56.16%) is invested in assets in Canada. Its top three holdings, top to bottom, are currently Newcrest Mining Ltd, Randgold Resources Limited ADR and Newmont Mining Corp.

No.4: Smith & Williamson Global Gold & Resources

Another fund which recorded losses across the last five years, Smith & Williamson Global Gold & Resources jumped to a growth rate of 140.2% in the first 7 months of 2016. Like other top five success stories the fund invests in gold. The largest share of its assets invested in gold mining companies as well as precious metal related companies and resource based companies. However, the fund also invests in gold bullion shares and other transferrable securities, money market instruments, deposits, collective investment schemes and warrants. As of the 9th August the fund manages £67.0 Million (US$87.1 Million). Agnico-Eagle Mines, Newmont Mining and Asanko Gold are its top holdings, top to bottom.

No.3: Investec Global Gold

Starting into the top three, the bronze spot for best performing funds is taken by another fund investing in gold mining primarily. The UK based fund recorded growth in total returns as high as 145.8% after five years of losses. In its worst year, 2013, the fund lost as much as 44.2%. It is now managing a total of £144.1 million (US$187.3 million). Like other well-performing funds, it is most highly invested in Newmont Mining Corp, Newcrest Mining Ltd and Barrick Gold Corp.

No.2: WAY Charteris Gold & Precious Metals

Taking the second place, WAY Charteris Gold & Precious Metals managed to increase total returns by 205% since the start of the year. It is also the fund which currently is rated highest in the FE Risk Rating with a score of 291. This rating is relative to the FTSE100 rating, which is always kept at 100. The ranking further exposes the idea that precious metals is the path to success this year. The fund invests in a range of instruments which feature gold or other precious metals exposure as direct underlying assets and has holdings of transferable securities in companies whose core business lies in the gold and wider precious metal industry. About 90% of all assets are invested in Canada and it’s top holdings at the moment lie in the Silver industry with Endeavour Silver, First Majestic Silver and Fortuna Silver Mines Inc representing the largest weight in holdings.

No1.: MFM Junior Gold

At the top of all best performing funds stands currently MFM Junior Gold, a fund which manages as of the end of June only £18.3 million (US$23.8 million). The fund recorded some of the greatest losses in the past years, reaching -65.8% at their lowest in 2013. It has now managed one of the biggest recoveries on the table over the course of the last 7 months, to take the top spot in performance just over half way through 2016, recording 226.3% in return growth. The fund, which invests mainly in small and medium sized companies in the industry of identifying, developing and extracting gold, targets investments in the mining industry of other precious metals as well and has in light of adverse market conditions also turned to cash holdings, bonds and government securities. Its top holdings are currently in Aureus Mining Inc., Taranga Gold Corp and Endeavour Mining Corp. 
10/08/2016
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