As we near the end of 2017 we take a look back at the best and worst funds for the year. Some surprises, some (unfortunate) repetition.
In a change to normal formats, the tables come first and comment follows.
| Top 10 Funds |
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|
|
| Name |
Sector |
Fund Size (£m) |
YTD (%) |
| Baillie Gifford Greater China |
China/Greater China |
113.3 |
46.05 |
| JPM Asia Growth |
Asia Pacific Excluding Japan |
240.1 |
40.44 |
| Baillie Gifford Pacific |
Asia Pacific Excluding Japan |
337.9 |
40.12 |
| Baring Eastern Trust |
Asia Pacific Excluding Japan |
93.2 |
39.7 |
| Janus Henderson China Opportunities |
China/Greater China |
1080 |
39.46 |
| Jupiter UK Smaller Companies |
UK Smaller Companies |
207.5 |
39.23 |
| Investec Asia Ex Japan |
Asia Pacific Excluding Japan |
207.5 |
39.22 |
| Threadneedle China Opportunities |
China/Greater China |
120.7 |
37.63 |
| Baillie Gifford Emerging Markets Growth |
Global Emerging Markets |
729.5 |
37.54 |
| Baillie Gifford Emerging Markets Leading Cos. |
Global Emerging Markets |
486.8 |
37 |
| |
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|
| Bottom 10 Funds |
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|
|
| Name |
Sector |
Fund Size (£m) |
YTD (%) |
| Janus Henderson Inst Overseas Bond |
Global Bonds |
235.5 |
-3.76 |
| Aviva Inv European Property |
Property |
200.4 |
-3.88 |
| Kames UK Equity Absolute Return |
Targeted Absolute Return |
146 |
-3.89 |
| Scottish Widows International Bond |
Global Bonds |
858.7 |
-4.09 |
| Investec Global Gold |
Specialist |
88.3 |
-4.51 |
| Threadneedle Dollar Bond |
Global Bonds |
124.8 |
-4.79 |
| BlackRock Gold & General |
Specialist |
1043.9 |
-6.38 |
| Thesis TM Sanditon European Select |
Targeted Absolute Return |
115.1 |
-6.74 |
| Majedie Tortoise |
Targeted Absolute Return |
1400 |
-11.92 |
| Investec Global Energy |
Specialist |
66.1 |
-15.5 |
Best funds of 2017
China and Asia dominate the top 10 list. There are 3 funds from the China sector and funds like Baillie Gifford’s Pacific fund have substantial allocations to China.
One UK Smaller Companies fund makes the top 10, ignoring the constant media focus on Brexit.
Emerging markets make up the rest of the top 10 places.
Worst funds of 2017
There are some risky funds in the bottom list. Gold and Energy both feature. What’s more telling is the number of “lower risk” funds featuring. There are 3 Targeted Absolute Return funds in the table, down between 3.8% and 11%. We often say that this sector contains funds taking more risk than investors might expect. Beware.
Global bonds and European property make up the rest of the bottom table.
The numbers
There is £3,616m of investor money held in the top 10. In contrast, the bottom table holds £4,278m of investor money, nearly £662m more than the top 10 table.
The average performance of the top 10 funds is 39.64%. The average of the bottom table is -6.55%. That’s a huge differential of 46% over 12 months.
There are always opportunities, as we can see from the top table, but also persistent risks. As we go through the year we’ll continue to highlight the former, while trying to keep a safe distance from the latter.
ACTION FOR INVESTORS
- These tables show the importance of maintaining a disciplined process for investing.
- 2016 was a roller-coaster. 2017 has been much less bumpy.
- Plan for much greater volatility in 2018.
FURTHER READING
Data: 01/01/2017-20/12/2017; universe: UT & OEICs; fund size >£50m; funds that sit on Old Mutual’s platform excluded.