China tops sector performance
In terms of IA fund sectors, China came out as the best performing with a return of 36.51%.
This was closely followed by a trio of smaller companies sectors. During last year, the Japanese Smaller Companies returned 31.55%, UK Smaller Companies 26.56% and European Smaller Companies 25.77% (see chart below).
This came during a year where all IA fund sectors made a profit for investors and only 59 out of 2,498 funds fell in value.
Ben Yearsley, director at Shore Financial Planning, said: “China and Asia led the way, but after a fairly poor 2016, UK Smaller Companies had a resurgence in 2017 to run Asia close. But well done to Baillie Gifford for having the two best performing funds of last year.”
The success of Asia in 2017 was also reflected in market performance, with Hong Kong’s Hang Seng, MSCI Emerging Markets and Japan’s Topix returning 41.29%, 30.55% and 22.23% respectively.
Yearsley added: “With the benefit of hindsight, asset classes performed as expected in 2017 if you look at the macroeconomic background of tightening rates in the US and reasonably strong global growth. Riskier assets were nearer the top of the performance tables and gilts and bonds were closer to the bottom.”
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