Fe Fundinfo data shows the top funds and sectors from the first half of 2023

by | Jul 26, 2023

FE fundinfo has released data showcasing the best-performing funds and sectors for the first half of 2023.

The data drawn from FE Analytics – the system that provides fund research and analysis and is trusted by around 4,000 independent financial adviser firms – has shown which funds in four of the key Investment Association universes have outperformed their counterparts during the first six months of the year and also which funds were leading the way during the same period a year ago.

Best performing funds from key selected sectors

Sterling Strategic Bond

During the first half of 2023, the Sterling Strategic Bond universe witnessed numerous funds that displayed positive performances. Topping the list of these funds were funds with a heavy exposure to credit markets, which proved to be more resilient than expected. Leading the pack is the Capital Group Global High Income Opportunities, delivering returns of 4.34%. This fund demonstrated robust performance by capitalising on opportunities within the US Dollar High Yield and Emerging Market debt markets.
 
Following closely behind was the FTF Brandywine Global Income Optimiser fund, which yielded a notable return of 4.28%.
 
Other noteworthy performers were the Schroder Strategic Credit fund, recording a solid return of 4.13%, M&G Optimal Income fund secured a return of 3.71% and the Ninety One Global Total Return fund achieved a return of 3.65% each solidifying there position among the top-performing funds.
 
During the same period in 2022, the top five funds in this sector were FP Carmignac Unconstrained Global Bond (0.42%), Merian Global Strategic Bond (-1.30%), M&G UK Inflation Linked Corporate Bond (-1.42%), Carmignac Portfolio Global Bond (-1.90%) and WS Charteris Strategic Bond (-2.38%).

Sterling Strategic Bond
20232022
Top five best performing funds (1 Jan – 30 June 2023)Performance (1 Jan – 30 June 2023)Top five best performing funds (1 Jan – 30 June 2022)Performance (1 Jan – 30 June 2022)
Capital Group Global High Income Opportunities4.34%FP Carmignac Unconstrained Global Bond0.42%
FTF Brandywine Global Income Optimiser4.28%Merian Global Strategic Bond-1.30%
Schroder Strategic Credit4.13%M&G UK Inflation Linked Corporate Bond-1.42%
M&G Optimal Income3.71%Carmignac Portfolio Global Bond-1.90%
Ninety One Global Total Return3.65%WS Charteris Strategic Bond-2.38%

IA Global Equity

Looking at the global equity sector, the funds benefitting from the AI revolution topped the chart. Unsurprisingly, the L&G Artificial Intelligence fund, boasting an impressive return of 36.25% making it the top performer in the Global Equity universe for the first half of 2023.
 
Following closely behind was the PGIM Jennison Global Equity Opportunities fund, which achieved a substantial return of 31.71%.
 
Making up the rest of the top five were the Invesco Xtrackers MSCI World Consumer Discretionary fund with a return of 28.70, SSGA SPDR MSCI World Consumer Discretionary fund who secured a return of 28.69% and MS INVF Global Opportunity fund who achieved a return of 28.34%.
 
During the same period in 2022, the top five funds were Schroder Global Equity Income in GB (33.49%), SSGA SPDR MSCI World Energy (24.09%), iShares Agribusiness (9.73%), SVS Kennox Strategic (8.94%) and SPDR S&P Global Dividend Aristocrats (6.72%).

Global Equity
20232022
Top five best performing funds (1 Jan – 30 June 2023)Performance (1 Jan – 30 June 2023)Top five best performing funds (1 Jan – 30 June 2022)Performance (1 Jan – 30 June 2022)
L&G Artificial Intelligence36.25%Schroder ISF Global Energy33.49%
PGIM Jennison Global Equity Opportunities31.71%SSGA SPDR MSCI World Energy24.09%
Xtrackers MSCI World Consumer Discretionary28.70%iShares Agribusiness9.73%
SSGA SPDR MSCI World Consumer Discretionary28.69%SVS Kennox Strategic8.94%
MS INVF Global Opportunity28.34%SPDR S&P Global Dividend Aristocrats6.72%

IA Global Emerging Markets

There were several impressive performers in the Global Emerging Markets universe but topping the list for the first half of the year was the Artisan Emerging Markets fund, which delivered a return of 11.03%. This fund’s strategy of focusing on emerging markets proved to be highly successful, outperforming its peers by a significant margin.
 
Second on the list was the Robeco Emerging Stars Equities fund, which achieved a solid return of 13.88%. Their disciplined approach to investing in emerging markets helped generate attractive returns for investors during this period.
 
Securing the third spot was the GQG Partners Emerging Markets Equity fund, which delivered a commendable return of 12.24%, while fourth spot went to the Lazard Emerging Markets Equity fund with a return of 11.74% and fifth went to the Invesco Emerging Markets ex China (UK) fund delivered a return of 11.29%, securing its place among the top-performing funds.
 
During the same period in 2022, the top five funds were Invesco Emerging Markets ex China (UK) (17.43%), BNY Mellon Emerging Income (0.73%), Nedgroup Investments Global Emerging Markets Equity (0.00%), SPDR S&P Emerging Markets Dividend Aristocrats (-0.36%) and M&G Global Emerging Markets (-0.81%).

Global Emerging Markets
20232022
Top five best performing funds (1 Jan – 30 June 2023)Performance (1 Jan – 30 June 2023)Top five best performing funds (1 Jan – 30 June 2022)Performance (1 Jan – 30 June 2022)
Artisan Emerging Markets14.03%Invesco Emerging Markets ex China (UK)17.43%
Robeco Emerging Stars Equities13.88%BNY Mellon Emerging Income0.73%
GQG Partners Emerging Markets Equity12.24%Nedgroup Investments Global Emerging Markets Equity0.00%
Lazard Emerging Markets Equity11.72%SPDR S&P Emerging Markets Dividend Aristocrats-0.36%
Invesco Emerging Markets ex China (UK)11.29%M&G Global Emerging Markets-0.81%

IA UK All Companies

Topping the list in the UK All Companies universe was Liontrust UK Focus, delivering a return of 12.86%. The fund’s ability to focus on a concentrated portfolio of UK companies allowed it to capitalise on market conditions and generate substantial gains for investors.

Following closely behind was Artemis UK Select, which achieved a commendable return of 11.24%. Artemis’s investment strategy, emphasising active management and fundamental research, proved successful in identifying promising investment opportunities within the UK market.

Making up the rest of the top five were the Ninety One UK Special Situations with a return of 10.12%, CT UK Extended Alpha generating a return of 8.06% and Schroder UK Alpha Plus, which achieved a return of 7.72%.

During the same period in 2022, the top five funds were Invesco FTSE RAFI UK (4.15%), Invesco UK Opportunities (UK) (3.87%), Jupiter UK Special Situations (3.22%), iShares MSCI UK (1.46%) and TM CRUX UK Core (0.81%).

UK All Companies
20232022
Top five best performing funds (1 Jan – 30 June 2023)Performance (1 Jan – 30 June 2023)Top five best performing funds (1 Jan – 30 June 2022)Performance (1 Jan – 30 June 2022)
Liontrust UK Focus12.86%Invesco FTSE RAFI UK4.15%
Artemis UK Select11.24%Invesco UK Opportunities (UK)3.87%
Ninety One UK Special Situations10.12%Jupiter UK Special Situations3.22%
CT UK Extended Alpha8.06%iShares MSCI UK1.46%
Schroder UK Alpha Plus7.72%TM CRUX UK Core0.81%

Best performing sectors

The best-performing sector was Technology & Technology Innovation TR, which showed a substantial performance of 24.83%. This sector demonstrated remarkable growth and outperformed other sectors during this timeframe on the back of the AI revolution.

Other notable performers include Latin America with a performance of 11.87%, North America with a performance of 8.32%, Europe Excluding UK with a performance of 7.85%, and Europe Including UK with a performance of 7.44%. Although these sectors experienced positive growth during the mentioned period, they did not match the outstanding performance of the Technology & Technology Innovation TR in GB sector.

During the same period in 2022, the top five sectors were Commodity/Natural Resources (6.81%), UK Direct Property (5.33%), Latin America (4.79%), Infrastructure (2.88%) and USD Government Bond (1.67%).

20232022
Top five performing sectors (1 Jan – 30 June 2023)Performance (1 Jan – 30 June 2023)Top five performing sectors (1 Jan – 30 June 2022)Performance (1 Jan – 30 June 2022)
Technology & Technology Innovation24.83%Commodity/Natural Resources6.81%
Latin America11.87%UK Direct Property5.33%
North America8.32%Latin America4.79%
Europe Excluding UK7.85Infrastructure2.88%
Europe Including UK7.44%USD Government Bond1.67%

Charles Younes, Head of Manager Selection, FE Investments, said:

“Throughout the first half of 2023, the top-performing funds we have seen have consistently demonstrated their expertise in their respective investment categories. These funds have delivered impressive returns, showcasing their strong performance, robust strategies, and ability to generate substantial growth for our investors. We remain committed to providing exceptional investment opportunities and delivering value to our clients.

“When looking at the best performing sectors, it shows that equity markets have been more robust than expected, while the sell-off in bond markets have continued despite expectations for the economy to collapse.”

“Using FE Analytics – which is now integrated with FE CashCalc – with its comprehensive database and advanced analytical tools, we can identify see those funds that are performing well and use it as a good starting point for our funds analysis to help us make informed investment decisions.”

Data from FE Analytics is trusted by more than 4,000 independent financial advice firms for all their fund research and analysis. It enables them to have a holistic view of their entire investment proposition, ensuring investment suitability and supporting them to demonstrate the value of their investment proposition to their clients.

With over 300,000 portfolios and instruments to browse and compare, including UT & OEICS, ITs, Offshore, Onshore and DFMs, clients can easily shortlist funds based on suitability criteria.

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