As we start 2017 here is a look at the top and bottom funds across all sectors from last year. There are some surprises, both good and bad.
See commentary below the table.
Top 10
|
Manager
|
Fund
|
Sector
|
Performance (%)
|
Fund Size (m)
|
|
Investec
|
Global Gold
|
Specialist
|
83.62
|
91.8
|
|
JPM
|
Natural Resources
|
Specialist
|
80.72
|
777.4
|
|
BlackRock
|
Gold & General
|
Specialist
|
80.02
|
1164.5
|
|
CF Ruffer
|
Gold
|
Specialist
|
76.66
|
656.5
|
|
Neptune
|
Russia & Greater Russia
|
Specialist
|
72.69
|
193.0
|
|
First State
|
Global Resources
|
Global
|
69.45
|
521.5
|
|
Aberdeen
|
Latin American Equity
|
Specialist
|
64.12
|
192.4
|
|
Investec
|
Enhanced Natural Resources
|
Specialist
|
60.07
|
102.2
|
|
Jupiter
|
Emerging European Opportunities
|
Specialist
|
55.76
|
108.4
|
|
JPM
|
Emerging Europe Equity
|
Specialist
|
52.79
|
77.0
|
Bottom 10
|
Manager
|
Fund
|
Sector
|
Performance (%)
|
Fund Size (m)
|
|
FP Argonaut
|
Absolute Return
|
Targeted Absolute Return
|
-25.63
|
227.0
|
|
CF Odey
|
Absolute Return
|
Targeted Absolute Return
|
-18.25
|
817.6
|
|
City Financial
|
Absolute Equity
|
Targeted Absolute Return
|
-10.94
|
209.1
|
|
M&G
|
Property Portfolio
|
Property
|
-7.23
|
3982.1
|
|
BlackRock
|
Dynamic Return Strategy
|
Targeted Absolute Return
|
-7.22
|
218.5
|
|
Jupiter
|
UK Growth
|
UK All Companies
|
-7.13
|
1441.7
|
|
Aberdeen
|
UK Property
|
Property
|
-5.66
|
519.3
|
|
Threadneedle
|
Absolute Return Bond
|
Targeted Absolute Return
|
-5.22
|
88.2
|
|
Threadneedle
|
UK Property AIF
|
Property
|
-5.21
|
973.2
|
|
BlackRock
|
European Absolute Alpha
|
Targeted Absolute Return
|
-5.18
|
93.8
|
Best funds of 2016
Gold and natural resources have been the story of the year. Of the top 10 funds, 6 are natural resources or gold funds. The largest of them is the BlackRock Gold & General fund, at just over £1bn. Russian equities had a good 2016 turning around thanks in part to the rising price of oil. Emerging European funds like Jupiter Emerging European Opportunities benefitted from Russia's good fortune. The fund has 56% invested in Russia.
A Latin American fund makes up the rest of the top 10 funds thanks to stronger commodity prices and China's demand for resources to fuel growth.
Worst funds of 2016
There are 6 Targeted Absolute Return funds in the bottom table. This sector is where investors may look to seek out dull, dependable funds for the heart of a portfolio. The poor performance in 2016 from some of these funds shows the dangers lurking under the surface of this sector with its mishmash of funds that make up the sector.
Brexit hurt a number of Targeted Absolute Return funds and also put pressure on some Property and UK All Companies funds.
We wrote at length about property funds earlier in the year (see here and here for more). It isn’t surprising to see some of these funds at the bottom but we still have faith in certain areas of the property sector: selective commercial property outside of London and the Southeast where yields are still attractive.
A UK All Companies fund makes up the rest of the bottom table thanks to its tough start to 2016 and Brexit. Political uncertainty will be a major theme globally in 2017 but will be particularly acute for the UK as negotiations around the exit from the EU project proceed.
There are many opportunities for careful investors and we’ll continue to highlight these as we go through 2017.
ACTION FOR INVESTORS
- These tables show the importance of maintaining a disciplined process for investing..
- 2016 has been a real rollercoaster. The outlook for 2017 is one of selective opportunities.
- Expect volatility. But don’t confuse volatility with risk.
FURTHER READING
Data notes: Retail UT/OEICs universe, >£50m in size, 1/1/16-31/12/16