Q3 2021: the recovery continues
At first glance, the top performing funds on FundCalibre this quarter are an eclectic bunch, with Indian, Japanese, UK, healthcare and global equity funds, all in the frame.
Unlike the second quarter of the year, when Brazilian equities and European real estate funds were the clear winners, the third quarter of the year saw a more varied mix of funds making it into the top ten.
The best performer was GSAM India Equity Portfolio, which, along with other Indian equity funds has been benefiting from continued domestic interest and increasing economic momentum over the summer months. It returned 14.81%* between the end of June and the end of September.
The underlying theme of the top ten performing Elite Rated funds and trusts during the third quarter, however, was the global recovery. “Both Japanese and smaller companies tend to do well when the global economy is doing well,” commented Ryan Lightfoot Aminoff, senior research analyst at FundCalibre.
Top ten performing Elite Rated funds and trusts in the third quarter of 2021:
| Rank | Fund/Trust | Percentage returns in Q3* |
| 1 | Goldman Sachs India Equity Portfolio | 14.81% |
| 2 | FSSA Japan Focus | 12.91% |
| 3 | Stewart Investors Indian Subcontinent Sustainability | 12.77% |
| 4 | Baillie Gifford Shin Nippon | 9.35% |
| 5 | Polar Capital Global Healthcare Trust | 8.76% |
| 6 | Liontrust UK Smaller Companies | 8.22% |
| 7 | TM CRUX UK Special Situations | 7.68% |
| 8 | LF Montanaro Better World | 7.65% |
| 9 | Premier Miton Global Smaller Companies | 7.54% |
| 10 | ASI Global Smaller Companies | 7.29% |
Year to date, however, UK smaller companies dominate the top performers. Three specialist UK smaller companies funds and five UK multi-cap funds with a bias towards smaller companies are all in the top ten.
“The UK in general – but also UK smaller companies – have been unloved since 2016 due to Brexit uncertainty,” continued Ryan. “The outlook was finally starting to look better when Covid struck, and the home market never really had the chance to catch up with its global peers.
“But fast forward 12 months and our vaccine rollout’s been really good, we’ve got rid of the Brexit uncertainty, the government is being supportive of businesses and investors are returning to the UK market. The fact that valuations are still cheap also means that mergers and acquisitions have picked up, which has also helped small-caps.
“I expect UK smaller companies to continue to outperform as the reopening of the economy gathers pace.”
Top ten performing Elite Rated funds and trusts so far in 2021:
| Rank | Fund/Trust | Percentage returns year to date** |
| 1 | Liontrust UK Micro Cap | 39.41% |
| 2 | Goldman Sachs India Equity Portfolio | 34.18% |
| 3 | MI Chelverton UK Equity Growth | 31.46% |
| 4 | Stewart Investors Indian Subcontinent Sustainability | 30.11% |
| 5 | Marlborough UK Micro Cap Growth | 28.69% |
| 6 | TM CRUX UK Special Situations | 28.10% |
| 7 | Slater Growth | 26.80% |
| 8 | SVM UK Opportunities | 26.18% |
| 9 | Liontrust UK Smaller Companies | 25.91% |
| 10 | VT Downing Unique Opportunities | 25.53% |
*Source: FE fundinfo, total returns in sterling, 30 June to 29 September 2021
**Source: FE fundinfo, total returns in sterling, 1 January to 29 Setpember 2021
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. 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.Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice.Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.
