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In December we ran a preview of the best and worst funds of 2017. Here is the definitive table for the whole 2017.
There is some interesting read across to the latest What's Hot? What's Not? for December. First, the tables:
Top 10
| Name |
Sector |
Fund Size(m) |
Performance % |
| Baillie Gifford Greater China |
China/Greater China |
122.20 |
49.19 |
| Baillie Gifford Pacific |
Asia Pacific Excluding Japan |
353.40 |
42.37 |
| JPM Asia Growth |
Asia Pacific Excluding Japan |
257.90 |
42.27 |
| Baring Eastern Trust |
Asia Pacific Excluding Japan |
105.00 |
42.22 |
| Jupiter UK Smaller Companies |
UK Smaller Companies |
207.50 |
41.45 |
| Janus Henderson China Opportunities |
China/Greater China |
1162.40 |
41.21 |
| Investec Asia Ex Japan |
Asia Pacific Excluding Japan |
208.90 |
40.37 |
| Baillie Gifford Emerging Markets Growth |
Global Emerging Markets |
767.80 |
39.76 |
| Baillie Gifford Emerging Markets Leading Companies |
Global Emerging Markets |
494.30 |
38.88 |
| Threadneedle China Opportunities |
China/Greater China |
111.10 |
38.56 |
Bottom 10
| Name |
Sector |
Fund Size(m) |
Performance % |
| Investec Global Energy |
Specialist |
68.60 |
-13.05 |
| Majedie Tortoise |
Targeted Absolute Return |
1400.00 |
-10.85 |
| Thesis TM Sanditon European Select |
Targeted Absolute Return |
115.10 |
-6.52 |
| Threadneedle Dollar Bond |
Global Bonds |
124.80 |
-5.29 |
| Janus Henderson Inst Overseas Bond |
Global Bonds |
235.30 |
-4.07 |
| Kames UK Equity Absolute Return |
Targeted Absolute Return |
134.00 |
-3.97 |
| M&G Global Macro Bond |
Global Bonds |
1731.20 |
-3.83 |
| Aviva Inv European Property |
Property |
200.40 |
-3.48 |
| Threadneedle Global Bond |
Global Bonds |
417.70 |
-3.11 |
| Janus Henderson Credit Alpha |
Targeted Absolute Return |
312.10 |
-2.98 |
Best and worst funds of 2017
China and Asia dominate the top 10 list while one UK Smaller Companies fund also makes the top 10. Emerging markets make up the rest of the top 10 places. There may be value in certain areas of emerging markets in 2018.
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 4 Targeted Absolute Return funds in the table, down between 2.98% and 10.85%. 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.
It’s interesting to read across to the latest What’s Hot? What’s Not? list. A number of absolute return funds have had a poor December, although only two show up here and in the What's Not? table. Commodities have done well, with gold and global resources making up 6 of the top 10 funds for the month of December.
The numbers
There is £3,790m of investor money held in the top 10. In contrast, the bottom table holds £4,739m of investor money, nearly £948m more than the top 10 table.
The average performance of the top 10 funds is 41.63%. The average of the bottom table is -5.72%. That’s a huge differential of 47% 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: 01/01/2017-31/12/2017; universe: UT & OEICs; fund size >£50m; funds that sit on Old Mutual’s platform excluded.