Recession-proofing your portfolio
This article first appeared on octomembers.com on 23 September 2022 You know we’re in bother when...
It’s been a rocky start to the year for investors to say the least. The rotation from growth to value strategies continued in January as world economies opened up, before persistently high and climbing inflation started to grab the headlines. The uncertainty only worsened as Russia invaded Ukraine.
Stock markets hate uncertainty and the first three months of 2022 have been volatile. Most major markets are down or flat year-to-date*, with the exception of Latin America, which has had a flying start to the year. The MSCI Emerging Market Latin America index is up more than 30%, led by Peru and Brazil*.
Best performing Elite Rated funds and trusts in the first quarter of 2022
The standout performers during the first quarter of the year have been those funds and trusts exposed to natural resources in some way – those investing in mining companies, gold and Latin American companies.
“The Russian invasion of Ukraine, on top of the pandemic, has exacerbated the increase in the price of commodities,” commented Juliet Schooling Latter, research director at FundCalibre.
“Commodities were already enjoying a good run of rising prices, but the disruption in supply has just increased their costs exponentially.
“Russia is such a big supplier of oil and gas, that rising petrol and energy prices are obviously making the headlines. But it is also a big supplier of other commodities – nickel, aluminium, copper, steel and platinum to name a few – while Ukraine is a big supplier of wheat and corn. So, other countries that also export these commodities, such as those in Latin America, are also benefiting from the price rises as supply has become constrained.”
|Rank||Fund/Trust name||Q1 2022 percentage returns*|
|1||BlackRock World Mining Trust||28.7%|
|2||ASI Latin American Equity||26.3%|
|3||Ninety One Global Gold||18.0%|
|4||Murray International Trust||10.1%|
|5||Jupiter Gold & Silver||9.6%|
|6||Polar Capital Global Insurance||9.0%|
|7||The City of London Investment Trust||7.2%|
|8||Lazard Global Equity Franchise||6.8%|
|9||M&G Global Dividend||6.5%|
|10||JOHCM Global Opportunities||6.1%|
Darius and Juliet shared more thoughts and insights into the first quarter of 2022 on the Investing on the go podcast
*Source: FE fundinfo, total returns in sterling, 1 January to 29 March 2022.