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BUSINESSMonday 4 April 2016
Of Mutual Interest:
A not-so-bad quarter for funds brings sighs of relief
STAN CHOE China and elsewhere wors- Trader Jonathan Niles, right, works on the floor of the New York Stock Exchange. A relatively flat
AP Business Writer ened the concerns. quarter for mutual funds feels like a victory because investors were bracing for much worse earlier
NEW YORK (AP) — Investors Investors responded by this year.
made very little, if anything, dumping stocks. The larg-
from most mutual funds last est fund by assets, Van- (AP Photo/Richard Drew)
quarter. Phew. guard’s Total Stock Market
A relatively flat quarter Index fund, was down as While that pales in compar- tual funds and exchange- tween 2 percent and 2.2
feels like a victory because much as 11.3 percent for ison to the 6.2 percent it re- traded funds logged mod- percent, on average.
investors were bracing for the year on Feb. 11. The turned a quarter earlier, it’s est losses. The average Emerging-market stock
much worse earlier this fund hasn’t had that bad a still much better than the fund that invests in a mix funds were an outlier, re-
year, when the Standard & performance for a quarter steep loss it was on pace of large-cap foreign stocks turning an average of 3.6
Poor’s 500 index was in the since 2011. for in mid-February. lost 1.4 percent, for exam- percent. Big gains for Latin
midst of its worst start of a Stocks turned around, ple. American stocks helped
year in history. Only a rally though, and began climb- FOREIGN STOCK FUNDS Chinese stock funds were drive the performance, as
in the last seven weeks got ing slowly and steadily. Investors have been keen some of the worst perform- they recouped a portion of
stock funds back close to The S&P 500 had a stretch to get into foreign stock ers, losing an average of their sharp losses from ear-
even. where it rose at least 1 funds, pouring more mon- 4.8 percent, as econom- lier years. Brazilian stocks
It’s the latest jarring quar- percent for five consecu- ey into them over the past ic reports suggested the have jumped despite the
ter for investors, who have tive weeks, something that year than any other type of slowdown in the world’s country’s recession in part
endured sharp swings up hasn’t happened since investment. second-largest economy on speculation that its pres-
and down since last sum- April 2009, right after this All that popularity didn’t is even worse than feared. ident may be impeached
mer following years of re- bull market began. help their returns last quar- European and Japanese due to a corruption scan-
markably calm and strong Investors got some relief ter. Most foreign stock mu- stock funds also lost be- dal.
returns. The S&P 500 has from the Federal Reserve,
already had 15 days in the which said in mid-March
past three months where it that it will move slowly in
lost at least 1 percent. In all raising interest rates. News
of 2013 it had fewer than 20 on the economics front
such days; the same was was only somewhat reas-
true in 2014. suring. U.S. data wasn’t
Here’s a look at the trends good enough to convince
that made the first quarter: people the economy was
cruising, but it wasn’t bad
US STOCK FUNDS enough to confirm the
The first six weeks of the worst predictions of an im-
year brought a terrifying minent recession, either.
thud for stock funds. Employers added more
Worries were already high jobs than expected in Feb-
coming into the year that ruary, for example.
a weak global economy All in, the Vanguard Total
would pull the United States Stock Market Index fund
back into a recession. Poor returned 1 percent for the
numbers coming out of quarter, as of Wednesday.
Foxconn’s head pledges turnaround at Sharp
KEN MORITSUGU and other products for From left, Hon Hai Precision Industry Co. Ltd., also known as the infusion of capital from
Associated Press name-brand companies. Foxconn, Vice Chairman Tai Jeng-wu, Chairman Terry Gou Foxconn would improve
TOKYO (AP) — The head The two companies held a and Sharp President Kozo Takahashi pose for photos after they Sharp’s financial situation
of Taiwanese contract signing ceremony Saturday made a contract in Sakai, Osaka, western Japan Saturday, and allow it to “invest in
manufacturer Foxconn at a large-screen LCD pan- April 2, 2016. the new growth initiatives
pledged this weekend to el factory that they have that were suppressed due
turn around Japan’s Sharp jointly managed outside (Chika Oshima/Kyodo News via AP) to the financial challenges
Corp. by driving change at the west Japanese city of we have been facing in re-
the struggling LCD panel Osaka since 2012. displays. dent of the 104-year-old cent years.”
and home appliance mak- “I see us as a catalyst for Both Takahashi and Gou
er, as the two companies change,” Foxconn founder Kozo Takahashi, the presi- Japanese company, said paid tribute to Sharp’s his-
signed a takeover deal af- and chairman Terry Gou tory of innovation, which
ter a one-month delay. said at a news conference includes the world’s first
Foxconn, also known as following the ceremony. “If LCD calculator, and said
Hon Hai Precision Industry we cannot drive change in they would seek to marry
Co., is buying a 66 percent Sharp, our global competi- it with the production and
share in Sharp for 389 billion tors will eat us alive.” supply chain capabilities
yen ($3.5 billion) in the first Sharp, a leader in LCD that Foxconn has devel-
foreign takeover of a major technology and a maker oped in the intensely com-
Japanese electronics com- of flat-screen televisions petitive field of electronics
pany. A giant in contract and smart appliances, has manufacturing.
manufacturing, Foxconn been hit hard by fierce “My direction of turn-
assembles Apple iPhones price competition for LCD around is clear,” Gou said.
