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FUNDMARKET INSIGHT REPORT REFINITIV LIPPER RESEARCH SERIES EQUITY MARKET—QUARTER-END ANALYSIS SEPTEMBER 30, 2021 Executive Summary Concerns over rising COVID cases, U.S. politics, inflation worries, and a possible default from China’s property giant Evergrande pushed equity funds to their first quarterly loss in six in Q3. For Q3 2021, the average equity fund posted a 1.52% loss, with Lipper’s Commodities Funds macro-classification (+4.77%) outpacing the other six major equity groups for the second consecutive quarter. For September, the average equity fund declined 3.57%—its largest one-month loss since March 31, 2020—and its first monthly downturn since October 2020. The U.S. markets began the month mixed after investors weighed the possible impact a lower-than-expected nonfarm payrolls report might have on future economic growth. The employment report raised issues with the job market’s recovery amid a staggering rise in the delta variant of COVID-19. The Department of Labor announced the U.S. economy had added just 235,000 new jobs for August, far fewer than analyst expectations of 720,000. The unemployment rate, however, declined to 5.2% from 5.4% in July, touching a new pandemic low. In addition, average hourly earnings rose a concerning 0.6%, on a month-to-month basis, against a 0.3% expected rise. Japanese stocks roared to life during the week after Japan’s Prime Minister Yoshihide Suga, whose government has come under pressure because of its handling of the pandemic, said he would resign before this year’s national elections. The 10-year Treasury yield closed the week up three basis points (bps) at 1.33%. The following week, the Dow and the S&P 500 witnessed five consecutive days of downside performance as investors worried that rising case counts of COVID may be slowing global economic growth. In other news, the August U.S. producer price index rose 0.7%, above analyst forecasts of 0.6%, sending the year-over-year rise to 8.3% for August—its largest gain since its inception in 2010. Near-month oil futures rose 0.6% for the week to end at $69.72/barrel (bbl.). U.S. stocks ended the following week lower, with the Dow experiencing its third straight weekly decline, its longest losing streak since September 2020, on a weak consumer sentiment reading and increased daily volatility at week end blamed on quadruple witching—the simultaneous expiration of stock options, single stock futures, stock index futures, and stock index options. The 10-year Treasury yield closed up three bps to close out the day at 1.37%. Oil futures witnessed their fourth consecutive week of gains, settling at $71.94/bbl. On Monday, September 20, the Dow witnessed its worst one-day decline (-614.41 points) in nine weeks as debt default concerns for China’s Evergrande rattled the market. Equities took it on the chin as investors evaluated the possible impact a default by debt laden Evergrande might have on the broader market and after the CBOE Market Volatility Index (VIX) jumped to its highest level (28.47%) since May. However, just two days later, the Dow and S&P 500 posted their strongest daily returns in two months after talks of restructuring Evergrande eased some of the market participants’ initial default concerns. Equity Funds Suffer First Quarterly Loss in Six for Q3, with an Average 1.52% Decline Equity Funds Suffer First Quarterly Loss in Six for Q3, with an Average 1.52% Decline • For Q3 2021, equity funds (-1.52% on average) posted their first quarter quarterly decline in six. • Lipper’s Commodities Funds macro-classification (+4.77%) outperformed the other six broad-based equity groups, followed by Alternative Equity Funds (-0.02%) and Mixed-Assets Funds (-0.77%). • The Commodities Energy Funds (+12.62%) classification posted the strongest returns in the equity universe for Q3. • The World Equity Funds macro-classifications housed three of the four worst performing classifications in the equity universe for Q3, with China Region Funds (-13.13%) posting the weakest return of the group. • Nonetheless, India Region Funds (+10.85%) and Japanese Funds (+4.70%) were among the seven top performers in the equity fund universe. Authored by: TOM ROSEEN Head of Research Services Refinitiv Lipper An LSEG Business
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DATE
FUNDMARKET INSIGHT REPORTREFINITIV LIPPER RESEARCH SERIESEQUITY MARKET—QUARTER-END ANALYSIS
SEPTEMBER 30, 2021
Executive SummaryConcerns over rising COVID cases, U.S. politics, inflation worries, and a possible default from China’s property giant Evergrande pushed equity funds to their first quarterly loss in six in Q3. For Q3 2021, the average equity fund posted a 1.52% loss, with Lipper’s Commodities Funds macro-classification (+4.77%) outpacing the other six major equity groups for the second consecutive quarter. For September, the average equity fund declined 3.57%—its largest one-month loss since March 31, 2020—and its first monthly downturn since October 2020.
The U.S. markets began the month mixed after investors weighed the possible impact a lower-than-expected nonfarm payrolls report might have on future economic growth. The employment report raised issues with the job market’s recovery amid a staggering rise in the delta variant of COVID-19. The Department of Labor announced the U.S. economy had added just 235,000 new jobs for August, far fewer than analyst expectations of 720,000. The unemployment rate, however, declined to 5.2% from 5.4% in July, touching a new pandemic low. In addition, average hourly earnings rose a concerning 0.6%, on a month-to-month basis, against a 0.3% expected rise.
Japanese stocks roared to life during the week after Japan’s Prime Minister Yoshihide Suga, whose government has come under pressure because of its handling of the pandemic, said he would resign before this year’s national elections. The 10-year Treasury yield closed the week up three basis points (bps) at 1.33%.
The following week, the Dow and the S&P 500 witnessed five consecutive days of downside performance as investors worried that rising case counts of COVID may be slowing global economic growth. In other news, the August U.S. producer price index rose 0.7%, above analyst forecasts of 0.6%, sending the year-over-year rise to 8.3% for August—its largest gain since its inception in 2010. Near-month oil futures rose 0.6% for the week to end at $69.72/barrel (bbl.).
U.S. stocks ended the following week lower, with the Dow experiencing its third straight weekly decline, its longest losing streak since September 2020, on a weak consumer sentiment reading and increased daily volatility at week end blamed on quadruple witching—the simultaneous expiration of stock options, single stock futures, stock index futures, and stock index options. The 10-year Treasury yield closed up three bps to close out the day at 1.37%. Oil futures witnessed their fourth consecutive week of gains, settling at $71.94/bbl.
On Monday, September 20, the Dow witnessed its worst one-day decline (-614.41 points) in nine weeks as debt default concerns for China’s Evergrande rattled the market. Equities took it on the chin as investors evaluated the possible impact a default by debt laden Evergrande might have on the broader market and after the CBOE Market Volatility Index (VIX) jumped to its highest level (28.47%) since May. However, just two days later, the Dow and S&P 500 posted their strongest daily returns in two months after talks of restructuring Evergrande eased some of the market participants’ initial default concerns.
Equity Funds Suffer First Quarterly Loss in Six for Q3, with an Average 1.52% Decline
Equity Funds Suffer First Quarterly Loss in Six for Q3, with an Average 1.52% Decline • For Q3 2021, equity funds (-1.52% on average)
posted their first quarter quarterly decline in six.
• Lipper’s Commodities Funds macro-classification (+4.77%) outperformed the other six broad-based equity groups, followed by Alternative Equity Funds (-0.02%) and Mixed-Assets Funds (-0.77%).
• The Commodities Energy Funds (+12.62%) classification posted the strongest returns in the equity universe for Q3.
• The World Equity Funds macro-classifications housed three of the four worst performing classifications in the equity universe for Q3, with China Region Funds (-13.13%) posting the weakest return of the group.
• Nonetheless, India Region Funds (+10.85%) and Japanese Funds (+4.70%) were among the seven top performers in the equity fund universe.
Authored by:TOM ROSEENHead of Research ServicesRefinitiv LipperAn LSEG Business
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In addition, investors cheered the Federal Reserve’s decision to keep its bond buying program and interest rates unchanged—at least for now. Nonetheless, stocks trimmed some of the early day gains after Federal Reserve Chair Jerome Powell said plans to taper its bond buying program could be announced at the Fed’s November FOMC meeting and it could start raising interest rates in 2022. By the week’s end, the 10-year Treasury rose 16 bps to close at 1.47%.
At month end, investors remained risk averse, sending the Dow down more than 546 points on the day despite Congress’ last minute move to avoid a partial government shutdown, passing a short-term spending bill to keep the U.S government afloat through early December. Investors instead focused on inflationary concerns, an impasse among Democratic leaders in the House concerning two high profile spending bills, and a surprise increase in the prior week’s first-time jobless benefit claims, which rose to a two-month high. The 10-year Treasury yield closed the month up 22 bps at 1.52%, pressuring equities.
Lipper’s preliminary Q3 2021 fund-flows numbers showed mutual fund investors were net purchasers of fund assets for the quarter, injecting an estimated $46.3 billion into the conventional funds business (excluding ETFs). Investors were net sellers of equity funds for the fourteenth consecutive quarter (-$34.4 billion for Q3 2021), shunning domestic equity funds (-$61.2 billion), while embracing nondomestic equity funds (+$25.8 billion). But for the sixth consecutive quarter, investors were net purchasers of taxable bond funds (+$59.2 billion). Municipal bond funds, also for the sixth quarter in row, witnessed net inflows, taking in $22.4 billion for Q3. For the third quarter in a row, investors were net purchasers of money market funds, although injecting just $63 million. ETF investors (authorized participants [APs]) were net purchasers for Q3 (+$130.6 billion), injecting $89.1 billion into equity ETFs (their twenty-second consecutive quarter of net inflows), $37.4 billion into taxable fixed income ETFs, and $4.2 billion into municipal debt ETFs.
For Q3, the major U.S. broad-based indices were mixed. The NYSE AMEX Composite Price Only Index outpaced the other oft-followed U.S. indices for the quarter, rising 1.88%. The S&P 500 Price Only Index (+0.23%) and the NASDAQ Composite Price Only Index (-0.38%) posted the second and third best returns, respectively, of the remaining U.S. broad-based indices. The Russell 2000 Price Only Index (-4.60%) posted the largest decline of the subgroup. Overseas, the Nikkei 225 Price Only Index (+1.76%) outperformed the other global indices for the quarter, followed by the Shanghai Composite Price Only Index (-0.65%), while the Xetra DAX Total Return Index (-3.98%) posted the largest quarterly decline of the group.
The broad-based indices finished the month of September mixed. On the domestic side, the NYSE AMEX Composite (+6.81%) witnessed the largest gains, followed by the Russell 2000 (-3.05%), while the NASDAQ Composite Price Only Index (-5.31%) posted the largest decline for the month. The overseas indices were also mixed for September, with the Nikkei 225 (+3.24%) outperforming the other overseas indices, while the Xetra DAX (-5.39%) suffered the largest declines for September.
For the quarter, only 21 of Lipper’s 104 equity and mixed-assets fund classifications posted positive returns. For the second consecutive quarter, the Commodities Funds macro-classification (+4.77%) outpaced Lipper’s other six broad equity groupings. Alternative
Equity Funds (-0.02%) took the runner-up position for the quarter, followed by Mixed-Assets Equity Funds (-0.77%), U.S. Diversified Equity (USDE) Funds (-1.04%), Sector Equity Funds (-1.44%), World Sector Equity Funds (-2.76%), and World Equity Funds (-2.94%). In total, only 26% of all individual equity and mixed-assets funds posted plus-side returns for the quarter.
During Q3, the dollar strengthened against the euro (+2.37%), the pound (+2.52%), and the yen (+0.42%). Commodity prices were mixed, with near-month crude oil prices gaining 2.12% to close the quarter at $75.03/bbl and with gold prices declining 0.88% to end the quarter at $1,755.30/oz. The 10-year Treasury yield rose five bps during the third quarter to 1.52%, after hitting a quarterly high of 1.55% on September 29.
Refinitiv Lipper FundMarket Insight Report | September 2021 3
U.S. Diversified Equity (USDE) Funds SummaryThe USDE Funds macro-classification (-1.04% [quarter] and -4.00% [September]) was the fourth best performing of Lipper’s seven broad-based equity macro-classifications for the quarter and sixth best for the month of September. In fits and starts during the quarter, investors leaned into tech and growth-oriented assets. For the second quarter in a row, fund investors preferred growth-oriented issues (-0.63%) over their core and value brethren. Large-cap funds (+0.07%) remained at the top of the leaderboard, also for the second consecutive quarter, outpacing the other capitalization groups. The S&P 500 Index Funds classification moved to the top of the macro-classification for the first quarter since Q3 2006 (+0.47% [quarter] and -4.68% [September]), followed by Lage-Cap Growth Funds (+0.43% [quarter] and -5.51% [September]), Options Arbitrage/Options Strategies Funds (+0.25% [quarter] and -1.98% [September]), and Large-Cap Core Funds (+0.08% [quarter] and -4.77% [September]). Q2’s group leader, Lipper’s Equity Leverage Funds classification (-7.35% [quarter] and -7.85% [September]) was Q3’s group laggard, bettered by Small-Cap Core Funds (-2.29% [quarter] and -2.53% [September]) and Small-Cap Growth Funds (-2.11% [quarter] and -3.54% [September]).
For the second quarter running, large-cap funds (+0.07%) outpaced the other capitalization groups as investors bid up large-cap information technology, healthcare, and financial issues. Mid-cap funds (-0.65%) beat the remaining capitalization groups for Q3, with multi-cap funds (-0.69%) and small-cap funds (-2.19%) being the laggards for the quarter. Also, for the second quarter in a row, growth-oriented funds (-0.63%) outperformed their core-oriented (-1.00%) and value-oriented (-1.21%) counterparts. According to Lipper’s active indices, the Large-Cap Growth Funds classification (+0.43%, the 4x3-matrix quarterly leader) was helped in Q3 by heavier weightings and strong performance by healthcare equipment services, software & services, and technology hardware & equipment issues.
For September—for the first month in seven—small-cap funds (-2.79%) mitigated losses better than the other capitalization groups, while value-oriented funds (-3.04%)—for the first month in four—outpaced their core- (-3.84%) and growth-oriented (-4.58%) counterparts. For September, Small-Cap Value Funds (-1.50%) posted the strongest relative returns in Lipper’s style-based funds group, while Large-Cap Growth Funds (-5.51%) was the laggard of the 4x3-matrix group. According to Lipper’s active indices, the average Small-Cap Value Fund benefitted from larger weightings and stronger returns in energy, banks, and media & entertainment industry groups.
FIGURE 1 LIPPER U.S. DIVERSIFIED EQUITY FUNDS CLASSIFICATION PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER 30, 2021
-8.0% -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0%
Equity Leverage Funds
Small-Cap Core Funds
Small-Cap Growth Funds
Small-Cap Value Funds
S&P Midcap 400 Index Funds
Specialty Diversified Equity Funds
Mid-Cap Value Funds
Multi-Cap Value Funds
Mid-Cap Core Funds
Equity Income Funds
Large-Cap Value Funds
Multi-Cap Core Funds
Multi-Cap Growth Funds
Mid-Cap Growth Funds
Large-Cap Core Funds
Options Arbitrage/Opt Strategies Funds
Large-Cap Growth Funds
S&P 500 Index Funds
U.S. DIVERSIFIED EQUITY FUNDS
FIGURE 2 LIPPER U.S. DIVERSIFIED EQUITY MATRIX, TOTAL RETURN (%) FOR THE QUARTER ENDED SEPTEMBER 30, 2021
VALUE CORE GROWTH AVERAGELarge-Cap -0.63 0.08 0.43 0.07Multi-Cap -1.17 -0.47 -0.38 -0.69Mid-Cap -1.38 -0.97 -0.05 -0.65Small-Cap -2.09 -2.29 -2.11 -2.19AVERAGE -1.21 -1.00 -0.63
FIGURE 3 LIPPER U.S. DIVERSIFIED EQUITY MATRIX, TOTAL RETURN (%) FOR THE MONTH ENDED SEPTEMBER 30, 2021
VALUE CORE GROWTH AVERAGELarge-Cap -3.42 -4.77 -5.51 -4.78Multi-Cap -3.42 -4.64 -5.06 -4.33Mid-Cap -2.99 -3.56 -4.27 -3.75Small-Cap -1.50 -2.53 -3.54 -2.79AVERAGE -3.04 -3.84 -4.58
Source: Refinitiv Lipper, An LSEG Business
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Domestic and World Sector Equity Funds SummaryOf Lipper’s seven equity macro-classifications, the Domestic Sector Equity Funds macro-group posted the fifth strongest returns (-1.44%), while its World Sector Equity Funds counterpart posted the sixth strongest return for the quarter (-2.76%). Between the two macro-groups, they housed two of the 10 top-performing classifications in the equity universe for Q3, with the Financial Service Funds classification (+2.98%) posting the strongest return in the group (for the first quarter since Q4 2016) and eighth strongest in the equity universe, followed by Global Financial Services Funds (+1.42%), Real Estate Funds (+0.82%), and Utility Funds (+0.48%). The Precious Metals Equity Funds (-12.33%), Specialty/Miscellaneous Funds (-5.75%), and Alternative Energy Funds (-5.48%) classifications were at the bottom of the group for the quarter.
The Domestic Sector Equity Funds macro-classification (-3.10%) was the fourth best performing of Lipper’s seven equity macro-classifications for September, while its World Sector Equity Funds (-4.54%) counterpart was the worst performing. The Natural Resources Funds classification (+9.44%), warehoused in the domestic sector equity macro-group, posted the strongest return of both groups for the month, while Energy MLP Funds (+4.07%) outpaced the other classifications in the two groups. The Precious Metals Equity Funds, Basic Materials Funds, and Global Science & Technology Funds classifications posted the lowest returns of the groups, declining 8.92%, 6.03%, and 5.93%, respectively, for the month.
-6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0%
Specialty/Miscellaneous FundsAlternative Energy FundsConsumer Services Funds
Consumer Goods FundsIndustrials Funds
Telecommunication FundsScience & Technology Funds
Basic Materials FundsEnergy MLP Funds
Health/Biotechnology FundsNatural Resources Funds
Utility FundsReal Estate Funds
Financial Services FundsDOMESTIC SECTOR EQUITY FUNDS
LIPPER DOMESTIC SECTOR EQUITY INVESTMENT CLASSIFICATION PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER 30, 2021
FIGURE 4.1
FIGURE 4.2LIPPER WORLD SECTOR EQUITY INVESTMENT CLASSIFICATION PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER 30, 2021
-14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0%
Precious Metals Equity Funds
Global Science/Technology Funds
International Real Estate Funds
Global Health/Biotechnology Funds
Global Natural Resources Funds
Global Real Estate Funds
Global Infrastructure Funds
Global Financial Services Funds
WORLD SECTOR EQUITY
Source: Refinitiv Lipper, An LSEG Business
Refinitiv Lipper FundMarket Insight Report | September 2021 5
FIGURE 5 LIPPER WORLD EQUITY INVESTMENT CLASSIFICATION PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER 30, 2021
-14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
China Region FundsLatin American FundsPacific Ex Japan Funds
Emerging Markets FundsPacific Region Funds
Global Small-/Mid-Cap FundsInternational Multi-Cap Growth
International Large-Cap CoreGlobal Multi-Cap Core
International Equity Income FundsInternational Large-Cap Growth
International Multi-Cap ValueInternational Small/Mid-Cap Value
Global Equity Income FundsGlobal Multi-Cap Value
International Multi-Cap CoreGlobal Large-Cap Value
International Large-Cap ValueInternational Small/Mid-Cap Core
Global Multi-Cap GrowthGlobal Large-Cap Core
European Region FundsGlobal Large-Cap Growth
International Small/Mid-Cap GrowthFrontier Markets Funds
Japanese FundsIndia Region Funds
WORLD EQUITY FUNDS
Source: Refinitiv Lipper, An LSEG Business
World Equity Funds SummaryWorld Equity Funds (-2.94%) posted the weakest returns for the quarter of Lipper’s seven broad-based equity macro-classifications. India Region Funds (+10.85%) moved to the top of the leaderboard for the first quarter in four, followed by Japanese Funds (+4.70%), Frontier Markets Funds (+2.00%), and International Small-/Mid-Cap Growth Funds (+0.62%). China Region Funds (-13.13%, the worst performing classification in the equity universe) was at the bottom of the charts, bettered by Latin American Funds (-10.86%) and Pacific ex-Japan Funds (-9.71%) for Q3.
For September, the World Equity Funds macro-classification (-3.92%) posted the fifth strongest return of the seven Lipper equity macro-classifications. At the top of the group was Japanese Funds, posting a 2.34% gain, followed by India Region Funds, posting a 0.42% return, and Frontier Markets Funds, declining 1.39%. Latin American Funds (-7.87%) was at the bottom of the group for September, bettered by European Region Funds (-5.00%).
International small/-mid-cap funds and global large-cap funds mitigated losses better or posted stronger returns than the other capitalization groups for Q3, gaining 0.09% and losing 0.88%, respectively. International (-1.49%) and global (-0.95%) growth-oriented funds bested their value- and core-oriented brethren for the international and global 3x3-matrix groups.
For September, international multi-cap funds and global small-/mid-cap funds mitigate losses better/outshined the other cap groups in the international and global matrices, while value-oriented funds edged out their core and growth brethren in the international and global matrices.
For the quarter, International Small-/Mid-Cap Growth Funds (+0.62%) outperformed the other classifications in the international 3x3-matrix group, while Global Large-Cap Funds (-0.78%) took the honors for the global 3x3-matrix group. For the month of September, the top performers for the individual matrices were International Multi-Cap Value Funds (-2.31%) and Global Multi-Cap Value Funds (-3.62%).
6 Refinitiv Lipper FundMarket Insight Report | September 2021
FIGURE 6 LIPPER INTERNATIONAL DIVERSIFIED EQUITY MATRIX TOTAL RETURN (%) FOR THE QUARTER ENDED SEPTEMBER 30, 2021
VALUE CORE GROWTH AVERAGE
Large-Cap -1.33 -2.15 -1.91 -1.90
Multi-Cap -1.81 -1.66 -2.30 -1.95
Small-/Mid-Cap -1.74 -1.26 0.62 0.09
AVERAGE -1.70 -1.73 -1.49
FIGURE 7 LIPPER INTERNATIONAL DIVERSIFIED EQUITY MATRIX TOTAL RETURN (%) FOR THE MONTH ENDED SEPTEMBER 30, 2021
VALUE CORE GROWTH AVERAGE
Large-Cap -2.52 -3.39 -4.58 -4.03
Multi-Cap -2.31 -3.43 -4.65 -3.66
Small-/Mid-Cap -3.31 -4.00 -4.09 -4.00
AVERAGE -2.44 -3.48 -4.50
VALUE CORE GROWTH AVERAGE
Large-Cap -1.44 -0.90 -0.78 -0.88
Multi-Cap -1.71 -2.07 -1.18 -1.64
Small-/Mid-Cap (No Style) -2.35 -2.35
AVERAGE (LARGE & MULTI) -1.65 -1.75 -0.95
FIGURE 8 LIPPER GLOBAL DIVERSIFIED EQUITY MATRIX TOTAL RETURN (%) FOR THE QUARTER ENDED SEPTEMBER 30, 2021
FIGURE 9 LIPPER GLOBAL DIVERSIFIED EQUITY MATRIX TOTAL RETURN (%) FOR THE MONTH ENDED SEPTEMBER 30, 2021
VALUE CORE GROWTH AVERAGE
Large-Cap -4.04 -4.55 -4.88 -4.72
Multi-Cap -3.62 -4.60 -4.75 -4.36
Small-/Mid-Cap (No Style) -4.12 -4.12
AVERAGE (LARGE & MULTI) -3.71 -4.59 -4.83
Source: Refinitiv Lipper, An LSEG Business
Refinitiv Lipper FundMarket Insight Report | September 2021 7
Alternatives and Commodities Funds SummaryThe Alternatives Funds (-0.02%) macro-classification posted the second strongest quarterly returns of the seven broad-based equity macro-groups, while Commodities Funds (+4.77%) took the number one position for the second quarter in a row. For the first quarter since Q1 2020, Dedicated Short Bias Funds (+4.86%) posted the strongest returns of the alternatives subgroup, while Alternative Event Driven Funds lost 1.76%. On the commodities funds side, Commodities Energy Funds (+13.26%) benefitted from the economic reopening-related rise in oil futures, while Commodities Precious Metals Funds (-6.94%) and Commodities Base Metals Funds (+1.03%) were at the bottom of the chart.
For September, the Alternatives Funds (-0.59%) macro-classification posted the second-best returns of the seven equity-related macro groups, while its Commodities Funds (+2.62%) brethren posted the best returns. Dedicated Short Bias Funds (+6.72%) posted the strongest returns of the alternatives funds subgroup for the month, followed by Alternative Equity Market Neutral Funds (-0.10%). On the Commodities Funds side, for the first month in three, Commodities Energy Funds (+10.97%) moved to the top of the charts in September, followed by Commodities General Funds (+3.94%).
Mixed-Assets Funds SummaryFor the quarter, the Mixed-Assets Funds macro-classification (-0.77% [quarter] and -2.90% [September]) took the number-three spot of Lipper’s seven equity macro-classifications. The Mixed-Assets Funds group is comprised primarily of target date and target risk funds, which generally have a mix of both stocks and bonds. Year to date through August 31, 2021, the macro-group attracted $634 million of estimated net flows, with target date funds taking in $26.2 billion, while target risk funds handed back $20.0 billion. The other classifications in the macro-group accounted for an additional $5.5 billion of net redemptions. Quarterly returns for the Mixed-Assets Funds classifications ranged from minus 5.84% (Emerging Markets Mixed-Asset Funds [-3.50% for September]) to positive 0.62% (Real Return Funds [-1.20% for September]).
FIGURE 11 LIPPER MIXED-ASSETS FUNDS INVESTMENT CLASSIFICATION PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER 30, 2021
-6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0%
Emerging Markets Mixed-Asset FundsMixed-Asset Target Alloc Agg Gro Funds
Mixed-Asset Target 2060 FundsMixed-Asset Target 2055 Funds
Mixed-Asset Target 2060+ FundsMixed-Asset Target 2050 Funds
Flexible Portfolio FundsMixed-Asset Target 2045 FundsMixed-Asset Target 2040 FundsMixed-Asset Target 2035 Funds
Mixed-Asset Target Alloc Growth FundsMixed-Asset Target 2030 Funds
Mixed-Asset Target Alloc Moderate FundsConvertible Securities Funds
Mixed-Asset Target 2025 FundsRetirement Income Funds
Mixed-Asset Target 2020 FundsMixed-Asset Target Alloc Consv Funds
Mixed-Asset Target 2015 FundsMixed-Asset Target 2010 Funds
Mixed-Asset Target Today FundsReal Return Funds
MIXED-ASSETS FUNDS
Source: Refinitiv Lipper, An LSEG Business
FIGURE 10.1 LIPPER ALTERNATIVES FUNDS INVESTMENT CLASSIFICATION PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER 30, 2021
FIGURE 10.2 LIPPER COMMODITIES FUNDS INVESTMENT CLASSIFICATION PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER 30, 2021
-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Alternative Event Driven Funds
Alternative Global Macro Funds
Absolute Return Funds
Alternative Long/Short Equity Funds
Alternative Multi-Strategy Funds
Alternative Managed Futures Funds
Alternative Equity Market Neutral Funds
Alternative Active Extension Funds
Dedicated Short Bias Funds
ALTERNATIVE EQUITY FUNDS
-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%
Commodities Precious Metals Funds
Commodities Base Metals Funds
Commodities General Funds
Commodities Agriculture Funds
Commodities Specialty Funds
Commodities Energy Funds
COMMODITIES FUNDS
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FIGURE 12 PERFORMANCE OF SECURITIES MARKET INDICES (LOCAL CURRENCIES)
ONE QUARTER YEAR TO DATE ONE YEAR THREE YEARS FIVE YEARS TEN YEARS6/30/2021 12/31/2020 9/30/2020 9/30/2018 9/30/2016 9/30/20119/30/2021 9/30/2021 9/30/2021 9/30/2021 9/30/2021 9/30/2021
INDEX CUM. RETURN CUM. RETURN CUM. RETURN ANN. RETURN ANN. RETURN ANN. RETURNDJ Ind Dly Reinv Avg IX -1.46 12.12 24.15 10.99 15.67 14.71FTSE 100 -1.72 8.20 25.99 -0.82 1.29 1.80NASDAQ Composite P IX -0.38 12.11 29.38 21.52 22.14 19.57
Nikkei 225 CR 1.76 -0.69 20.15 7.52 10.19 8.86S&P 500 TR IX 0.58 15.92 30.00 15.98 16.89 16.62DAX 30 TR -3.98 5.36 18.19 7.52 8.40 9.12
ONE QUARTER YEAR TO DATE ONE YEAR THREE YEARS FIVE YEARS TEN YEARS6/60/2021 12/31/2020 9/30/2020 9/30/2018 9/30/2016 9/30/2011
NASDAQ SYMBOL
9/30/2021 9/30/2021 9/30/2021 9/30/2021 9/30/2021 9/30/2021FUND NAME CLASS CUM CUM CUM ANN ANN ANNVanguard 500 Idx;Adm SPSP VFIAX 0.57 15.90 29.98 15.95 16.85 16.58SPDR S&P 500 ETF SPSP SPY 0.56 15.84 29.86 15.91 16.78 16.50Fidelity 500 Index Fund SPSP FXAIX 0.58 15.91 29.99 15.97 16.87 16.61Vanguard TSM Idx;Adm MLCE VTSAX -0.07 15.17 32.08 16.03 16.86 16.59iShares:Core S&P 500 SPSP IVV 0.57 15.89 29.96 15.94 16.85 16.56Vanguard TSM Idx;Inst+ MLCE VSMPX -0.06 15.19 32.10 16.05 16.88 -Vanguard TSM Idx;ETF MLCE VTI -0.06 15.18 32.09 16.03 16.86 16.59Vanguard 500 Idx;ETF SPSP VOO 0.57 15.90 29.98 15.95 16.85 16.58Vanguard TSM Idx;Inst MLCE VITSX -0.06 15.18 32.10 16.04 16.87 16.59Vanguard Tot I S;Inv IMLC VGTSX -3.01 6.39 24.33 8.23 8.95 7.82
FIGURE 13 PERFORMANCE OF THE 10 LARGEST FUNDS
Source: Refinitiv Lipper, An LSEG Business
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