Biotech funds top performance tables in risk-on November

Pictet Biotech was the best-performing fund last month, delivering a return of 13.65% based on FE Fundinfo data from 31 October to 30 November, followed by Polar Capital Biotechnology, which generated a return of 12.44% and Candriam Equities L Biotechnology, which returned 12.2% during the month.

Adrian Lowcock, head of personal investing at Willis Owen, said: "This appears to be a combination of 'a rising tide lifts all boats' and a growing belief that no matter who wins the 2020 Presidential election the impact of Medicare for all is not going to have as big [an] effect on the biotech industry as first believed."

Gilt and gold funds surge in risk-off August

He added: "Liontrust UK Opportunities and Liontrust UK Mid Cap presence in the top ten are an indication of the performance of the UK market, particularly in the more domestically-focused mid and smaller companies."

Lowcock said that November saw further profit taking in gold funds as investors rotated back into risk assets.

"MFM Junior Gold once again featured at the top of the worst-performers list, along with LF Ruffer Gold. Latin American funds dominated the worst-performers list," he said.

MFM Junior Gold delivered a negative percentage return of 9.38% last month, while LF Ruffer Gold was down 6.53%, according to Willis Owen.

Lowcock said bonds had a "tough month", with the IA Global Emerging Markets Bond sector leading UK Index Linked Gilts as the worst-performing sector in November, "as investors grew more confident and optimistic with regards to the outlook for the global economy".

Ben Yearsley, investment consultant at Fairview Investing, said November was a "good month for risk-on investments".

"The US and tech were the key sectors, but the UK also featured strongly - possibly on the poll numbers suggesting a Conservative majority," he said.

According to Fairview Investing, based on FE Fundinfo data from 1 November to 30 November, Liontrust UK Opportunities topped its ten best-performing funds table, generating a 10.73% return.

AXA Framlington Biotech was in second place, having delivered a 10.32% return in the month.

Yearsley said: "Liontrust's purchase of Neptune looks good timing with Liontrust UK Opportunities (a tiddler at £12m by the way) the top-performing fund in November, managed by Mark Martin, who also manages the number four best-performing fund Liontrust UK Mid Cap.

"Elsewhere you can always tell a ‘risk-on' month when Baillie Gifford funds feature heavily in the top ten best performers - three last month; UK, US and global smaller companies.

"At the foot of the table, there are six gold and precious metal funds after the price of gold slipped in October."