Page 25 - ARUBA TODAY

BUSINESS Monday 3 april 2017
A25

Of Mutual Interest:

Funds in the first quarter: Foreign markets were first

Even with the mediocre denominated in South Ko- cuts in taxes and looser reg-
performance, many in- rean won or Mexican pesos ulations for businesses.
vestors continued to buy were worth more in dollars. Funds that own larger
foreign stocks, looking The MSCI Emerging Markets stocks generally had better
for ways to diversify their index returned 8.8 percent returns during the quarter
portfolios. Yes, U.S. stocks in their local currencies, but than smaller-stock funds.
had been on top for a 13 percent in dollar terms. Managers who focus on
long time, but they likely — STILL STRONG IN THE US stocks with the fastest sales
couldn’t stay that way for- Foreign stock funds may and earnings growth were
ever. And foreign stocks have overshadowed their also particularly strong.
were looking cheaper than U.S. counterparts, but both Transamerica’s Capital
their U.S. counterparts by delivered in the first quarter. Growth fund returned 16.3
several measures, following The largest U.S. stock fund percent, for example, one
the split in performance. returned 5.6 percent, for of the top performances for
That patience was reward- example. That’s the sec- U.S. stock funds in the quar-
ed in the first quarter, and ond-best performance in ter. Three of its five biggest
Men chat in front of an electronic stock board showing Japan’s Vanguard’s Total Interna- the last three years for Van- investments jumped more
Nikkei 225 index at a securities firm in Tokyo, Friday, March 31, tional Stock Index fund re- guard’s Total Stock Market than 20 percent during the
2017. Funds that own stocks from Asia, Latin America and other turned 9.2 percent for its Index fund. quarter: Facebook, Illumina
foreign markets were some of the best performers during the first best quarter in nearly four The job market continues to and Tesla.
three months of the year. years. Returns were even improve, and optimism has — BOND FUNDS CHUG
(AP Photo/Eugene Hoshiko) bigger for the types of been surging for shoppers ALONG
STAN CHOE seem to have taken ad- funds that have been the and businesses. Corporate Many investors were brac-
AP Business Writer vantage. Money poured most frustrating recently: earnings, meanwhile, are ing for losses from their
NEW YORK (AP) — Anyone into stock funds in the final those that invest in emerg- on the rebound, which has bond funds as the calen-
with an American-only months of 2016, mostly fo- ing markets. helped push stock prices dar flipped into 2017.
401(k) account missed out cused on the U.S. market The dollar’s falling value higher. In the background That’s what happened at
in the first quarter. due to excitement that a in the first quarter helped, have been hopes for help the end of last year, after
Funds that own stocks from Republican-led Washing- because it meant returns from Washington, such as all.q
Latin America, Asia and ton would usher in business-
other foreign markets were friendly policies.
some of the best perform- Here’s a look at the trends
ers during the first three that helped shape the
months of the year. Hun- quarter for mutual funds
dreds had returns that were and exchange-traded
more than double those funds. All of the return fig-
of the most popular U.S. ures are through Wednes-
stock funds, which were no day.
slouches themselves. The — FOREIGN LED THE WAY
largest U.S. stock fund had For years, foreign stock
one of its best quarterly funds did nothing but frus-
performances in years. trate. Every peek higher
It was all part of a strong would inevitably give way
start to the year for funds in to another tumble, and the
general. Not only did stock largest foreign-stock fund
funds of all types power returned less than 1 per-
higher, so did bond funds. cent annualized for the de-
Just over 93 percent of all cade through 2016. What
the funds tracked by Morn- made the ride even more
ingstar had positive returns frustrating was that U.S.
in the first quarter, as of stocks nearly doubled over
Wednesday. the same time, after includ-
Fortunately, more investors ing dividends.