Overseas funds dominate 2016 top performers

This year has seen many a surprise—probably far more than any of us would’ve expected—as Brexit, Trump’s US presidency and Italy’s failed referendum all went in the ‘wrong’ direction to how the bookies were betting.

All in all though, global markets seemed to shake off the shocks. We had a post-presidential election rally in US stock markets, the FTSE 100 broke record highs after the Brexit vote and Europe’s equity and bond markets have been propped up throughout the year by the European Central Bank’s ongoing intervention.

In terms of top performing Elite Funds in 2016, BlackRock Gold & General finished first, with a return of 58.85%. This is hardly surprising given gold equities’ stellar start to the year off the back of a rising price in the commodity itself, as well as global uncertainty and a rush for ‘safe haven assets’.

Close behind in second spot was another specialist fund, Aberdeen Latin American Equity, which achieved returns of 56.40%. Emerging markets generally had a strong year prior to Trump’s election, bouncing back from a pretty terrible 2015. The Elite Rated Lazard Emerging Markets and M&G Global Emerging Markets also made it into our top ten for this year.

Many fund managers are concerned how emerging markets will fare under Trump and his “make America great again” pursuits. His first 100 days in office in the new year may start to give us some detail about his plans, but for now we are playing the waiting game. 2016, at least, has been a positive period.

Meanwhile our newly Elite Rated Hermes US SMID Equity delivered a 43.95% return. Comparing all of our top performers to the FTSE All Share and MSCI World indices (in the table below) shows just how well these funds were actively managed in one of the most turbulent years for markets since the global financial crisis of 2007.

*FE Analytics, Elite Funds, total returns in GBP, 31/12/2015–21/12/2016

The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.