Which funds have returned over 10% this year?

Type ‘average return of the global stock market’ into Google, and you’ll see the results are pretty unanimous: 10% per annum.

But, as we’ve seen over the past few years, this ‘average’ can mask some pretty dramatic highs and lows. Take February 2020 for example. As the consequences of the global pandemic and lockdowns dawned on markets, they fell some 25% in the space of a single month – to then rise almost 80% by the end of 2021*.

Indeed, as the chart below shows, stock market returns can vary substantially year on year. They were as high as 35% in 1999 just before the dotcom crash and as low as -25% in 2002.

Being prepared to invest through those ups and downs and hold your nerve is key to good long-term returns. Diversifying your investment portfolio can also help to make annual returns less dramatic.

global annual returns 1995-2019

But in a year when it seems to have been nothing but bad news for investments of any type, which have defied the odds and provided above average returns?

Elite Rated funds and trusts returning more than 10% in 2022

There are seven Elite Rated Funds and trusts which have returned in excess of 10% so far this year**.

They may or may not retain this level of performance by the end of 2022, but so far they have strongly outperformed in the current difficult climate.

 

BlackRock World Mining – up 24.5%**

BlackRock World Mining is a specialist trust offering exposure to mining and metals companies globally. In addition to investing in quoted securities, the trust may also invest in royalties derived from the production of metals and minerals, physical metals, and unquoted securities. It also offers an attractive dividend yield to investors.

 

abrdn Latin American Equity – up 23.2%**

This fund is managed by abrdn’s renowned emerging markets team, whose primary investment concern is whether companies demonstrate outstanding quality characteristics, such as strong management and balance sheets. This is followed by a value approach – targeting stocks which appear to trade for less than they should do.

 

Polar Capital Global Insurance – up 20.8%**

Everything around us is insured, regardless of economic boom or bust, which provides this fund with very good defensive characteristics. It is designed to provide exposure to non-life insurance companies, a specialist and often undervalued sector. The fund has been co-managed by Nick Martin since 2008 and he took on full responsibilities in 2016.

 

Murray International – up 20.3%**

As the name suggests, this trust offers an international portfolio of UK and global equities, as well as some bonds and has  a focus on maintaining an above-average yield for investors. We like the fact the Trust focuses on defensive business where the manager feels he will be able to retain both earnings and dividends, without paying over the odds.

 

Cohen & Steers Diversified Real Assets – up 15.3%**

While this fund is a relative newcomer to the UK market, it has the backing of Cohen & Steers’ depth and breadth of expertise. It offers investors a single destination for a range of inflation protecting assets, built with an eye on diversification, as well as returns. We believe this makes it a compelling choice, especially in tough inflationary environments.

 

Lazard Global Equity Franchise – up 10.6%**

Run by a four-strong team, this offering looks for companies that have an edge in their respective business sectors. It can invest in any firm around the world, but because the managers are looking for industry leaders, there is a natural bias towards larger-sized companies.

 

JPMorgan US Equity Income – up 10.4%**

Despite the naturally lower yielding nature of the US market, it has a long history of dividend payments, an increasing number of companies now paying a dividend and a number of dividend aristocrats – companies that have increased their dividends for 25 consecutive years or more. JPM US Equity Income fund targets an above-average income by investing in a diverse range of established stocks.

*Source: FE fundinfo, total returns in sterling, MSCI World, 20 February 2020 to 31 December 2021.

**Source: FE fundinfo, total returns in sterling, 31 December 2021 to 16 November 2022

 

Photo by Tim Mossholder on Unsplash

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.