Sell in May? Not this year…
By Staci West on 15 September 2026 in Equities
St Leger Day, this year falling on the 12th September, marks both the end of the summer sporting social calendar and the day some market timers reinvest. Referring to a time when stock market traders spent the summer attending sporting events and therefore had their eyes off the investment ball, the adage suggests that investors should “Sell in May and go away, come back on St Leger Day”.
But any equity investors following the adage this year would likely be kicking themselves today because, much like this summer’sweather, investments in most sectors have been shining. IA Infrastructure and IA China/Greater China were the only equity sectors not in positive territory*. Overall, 43 out of 57 Investment Association sectors had positive returns during the summer*.
Best-performing sectors
The best-performing sector was IA Technology & Technology Innovation, where the average fund returned 14.01%*. IA Financials and Financial Innovation was second (up 13.70%) and IA Healthcare and Biotechnology was third with average returns of 13.23%*. IA Japan was in fourth place (10.54%) and IA Asia Pacific excluding Japan in fifth (9.35%)*. Bottom of the table featured IA China/Greater China (-3.65%), IA Infrastructure (-2.53%) and IA EUR Government Bond (-2.45%).
Japan’s summer resurgence
Technology may have topped the sector tables, but look beneath the headline numbers and another market stands out: Japan. The IA Japan sector returned an impressive 10.54% over the summer*, placing it fourth overall, but several of our Elite Rated Japanese funds and trusts did considerably better.
Baillie Gifford Japan Trust led the group with a return of 18.16%, followed by Baillie Gifford Japanese (16.56%), Pictet Japanese Equity (16.04%) and Baillie Gifford Shin Nippon (15.40%). That means all four comfortably outpaced the IA Japan sector average.
Japan has been enjoying renewed investor interest as a combination of corporate governance reforms, improving shareholder returns, wage growth and a more inflationary environment begins to change the investment case for a market that spent decades battling deflation.
But Japan wasn’t home to the summer’s single biggest FundCalibre winner. That honour went to Invesco Emerging Markets ex China, which returned 20.41% between the start of May and St Leger Day*. That compares with just 8.21% for the wider IA Global Emerging Markets sector*, another reminder that sector averages can hide significant differences between individual funds.
For investors tempted to follow the old market adage, this summer offered a useful lesson: sometimes going away can mean missing out on more.
Top 10 performing funds and trusts on FundCalibre this summer
| Rank | Fund/Trust | Percentage returns* |
|---|---|---|
| 1 | Invesco Emerging Markets ex China | 20.41% |
| 2 | Jupiter Asian Income | 18.34% |
| 3 | Baillie Gifford Japan Trust | 18.16% |
| 4 | International Biotechnology Trust | 17.34% |
| 5 | Franklin Templeton Emerging Markets Investment Trust | 16.68% |
| 6 | Baillie Gifford Japanese | 16.56% |
| 7 | Pictet Japanese Equity | 16.04% |
| 8 | Baillie Gifford Shin Nippon | 15.40% |
| 9 | Polar Capital Biotechnology | 14.63% |
| 10 | Janus Henderson Global Financials | 14.11% |
*Source: FE Analytics, total returns in sterling, 1 May 2026 to 12 September 2026
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.
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