SDL UK Buffettology Tops Performance Charts In April As Small Caps Soar

It has proven to be a particularly successful start to the tax year for UK smaller company funds as they dominated the chart of the top ten best performing funds in April 2019, according to FE Analytics.

SDL UK Buffettology, in particular, has delivered impressive returns, topping the table with gains of 11% in April, alongside  other small-cap and multi-cap funds.

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The fund, launched by Keith Ashworth-Lord in March 2011, has been growing steadily over the past eight years. However, this growth has shown impressive acceleration in more recent months, with assets under management showcasing a 64% increase from 1 May 2018 to 1 May 2019.

Buffettology's strong April performance was closely followed by MI Discretionary Unit (10.92%) and L&G Growth Trust (10.13%).

UK small-caps have been performing well in the bullish market, with most major markets showing rising trends last month, despite no real headway being made in two dominating global issues: Brexit and the US-China trade war.

North American (+4.73%) and European (+4.55%)  small-caps almost made the top five best performing sectors with UK smaller companies (+5.47%), but all three were pipped to the post by the technology sector, which has been on the rise since the Fed changed track in its rhetoric at the beginning of this year and posted a 6.06% return in April.   

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Ben Yearsley, director at Shore Financial Planning, commented: "Risk assets were definitely in vogue in April, with some strong gains recorded across many global markets. Despite our inept politicians, the UK stockmarket had a decent month, with smaller companies doing especially well.

"Global equity markets also seem reasonably sanguine with unexpectedly good US GDP numbers last month and slightly better than expected Chinese figures, too. Despite the last month's increase, the UK still looks decent value, as there is undoubtedly a Brexit discount hanging over the market, with domestically focused stocks the cheapest.

"Alongside cheap valuations, UK companies continue to churn out cash - in fact, the first quarter of 2019 saw a record £19.7bn paid out. Cheap valuations, healthy balance sheets and cash generation will start attracting the attention of investors at some point."