Growing pains
The prevalence of specialist funds in the IA Global sector means that the top-15 highest returning funds looks a little different to the other two examined here but the same trend can be identified.
Four of the five strongest performers from this peer group focus on basic materials or energy stocks.
These areas suffered in recent years on the back of extreme commodity prices falls but came roaring back last year as inflationary pressures started to strengthen in the global economy and have been some of the most opportune hunting grounds for value investors.
First State Global Resources, where the £569m portfolio is overseen by Joanne Warner and Tal Lomnitzer, made the highest return after an increase of 70.9% during the course of the year.
Schroder ISF Global Energy, Guinness Global Energy and Legg Mason Martin Currie Global Resources all made total returns in excess of 40%.
On the flip side of specialist global funds, those focused on more defensive growth stocks, such as Fidelity Global Health Care and Schroder Global Healthcare, can be found in the sector’s bottom quartile.
Some growth-orientated funds did have a strong year, with Stuart Rhodes’ £6.7bn M&G Global Dividend fund being one.
However, the appearance of offerings such as Schroder Global Recovery, Investec Global Special Situations and Dimensional International Value demonstrates that the value style drove performance on the global stage as well as in the UK.
