The funds shooting the lights out in Q3

At Saltydog Investor, we monitor the performance of Investment Association (IA) sectors every week and the individual funds within them. Each quarter, we also look back to see which funds have delivered the strongest returns. 

• Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

In Q2, Barings Korea I GBP Acc (B9M3RQ4) topped our quarterly table after gaining an impressive 73.5%. Even the fund in 10th place returned 45.6%. 

Overall, Q3 was much less rewarding. However, the leading fund still gained 20.9%, while the 10th-ranked fund returned 12.1%. 

Here are the 10 best-performing funds for the third quarter. 

Saltydog’s top 10 funds in Q3 

Data source: Morningstar. Past performance is not a guide to future performance. 

The top four places were occupied by gold and precious metals funds, all from the IA Specialist sector. 

Three funds investing in traditional energy and natural resources also featured prominently, along with one each from the Japan, Technology & Technology Innovation, and UK Smaller Companies sectors. 

Their fortunes varied considerably over the three months, as the monthly figures show. 

July: energy and Japan make the running

July was a mixed month for stock markets, with some sectors continuing their recovery from the downturn earlier in the year while others struggled. 

Oil prices rose sharply as the continuing conflict in the Middle East disrupted supplies and raised concerns about the security of shipping routes.  

Brent crude futures gained approximately 24% during the month, providing a favourable backdrop for companies involved in oil and gas production. 

Traditional energy funds were among the strongest performers in our table. 

• Funds and trusts four pros are buying and selling: Q4 2026
• Fund Focus: four small-cap winners making big bets

Guinness Global Energy gained 10.8%, BGF World Energy D4 (B3Y9G49) rose 8.2%, and JPM Natural Resources C Net Acc (B88MP08) added 5.8%. Man Japan CoreAlpha Profl Acc C (B0119B5) also had a particularly good month, gaining 8.6%, while Aberforth UK Small Companies Acc (0007272) rose by 5.2%. 

However, the four gold funds made little progress. Three recorded small losses, while BlackRock Gold and General D Acc (B5ZNJ89) edged up by just 0.1%. Pictet - RoboticsI GBP (BDB6DB9) also struggled, falling by 1.6%. 

August: gold takes centre stage 

August brought a much broader improvement in market conditions. Of the 35 IA sectors we regularly monitor, 30 finished the month higher. 

The most spectacular gains, however, came from gold and precious metals funds from the Specialist sector. 

Gold prices rose sharply, supported by strong investment demand and a weaker US dollar.  

Gold mining shares performed even better, as rising gold prices improved expectations for their profitability. 

All four gold funds in our top 10 gained more than 30% during August.  

SVS Baker Steel Gold&Precious Mtls B Acc (BNGMZG1) led the way with a return of 33.9%, closely followed by Ninety One Global Gold I Acc £ (B1XFGM2) at 33.8%. 

• ii Top 50 Fund Index: most-bought funds, trusts and ETFs in Q3 2026
• Polar Capital Technology: the AI stocks I’m excited about in cognitive era

The scale of these gains completely transformed the quarterly rankings.  

Funds that had made virtually no progress in July suddenly found themselves among the strongest performers of Q3. 

Technology funds also enjoyed a better month, supported by continuing enthusiasm for artificial intelligence (AI) and the infrastructure needed to support it.  

Pictet Robotics gained 11.7%, reversing its July loss and making a significant contribution to its quarterly return. 

JPM Natural Resources rose by 11.5%, while the other energy funds continued to make progress, although at a slower pace than in July.  

Aberforth UK Smaller Companies added another 5.2%, while Man Japan Core Alpha gained 2.9%. 

September: a sharp contrast 

The recovery didn’t last. September was the weakest month since March, with only 10 of the 35 IA sectors making gains. In August, that number had been 30. 

Renewed tensions in the Middle East pushed energy prices higher again, adding to concerns about inflation and the outlook for interest rates.  

Bond yields rose, putting pressure on both fixed-interest investments and equity valuations. 

Gold also came under pressure as higher bond yields and a stronger US dollar reduced its appeal.  

Gold mining shares were particularly badly affected, with all four funds that eventually topped the quarterly rankings suffering losses of between 9.2% and 11.5%. 

For Ninety One Global Gold, September’s 9.5% fall followed its extraordinary 33.8% gain in August.  

• Portfolio Dilemma: what kind of income investor am I?
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

Despite giving back some of those gains, it still finished Q3 ahead by 20.9%. 

The traditional energy funds held up much better.  

BGF World Energy edged up by 0.1% and Guinness Global Energy gained 1.1%, although JPM Natural Resources fell by 4.0%. 

Technology also proved relatively resilient, with continued investment in AI helping to support the sector.  

Technology & Technology Innovation was the strongest IA sector in September, gaining 4.8%, while Pictet Robotics rose by 2.7%. 

Man Japan CoreAlpha continued its progress, gaining another 3.7%, while Aberforth UK Smaller Companies added 1.2%. 

What has happened since? 

The first couple of weeks of October have brought further changes. 

The gold funds that dominated Q3 have continued to struggle. By 16 October, Ninety One Global Gold was down approximately 4.0% for the month, while BlackRock Gold & General had fallen 2.9%.  

Ruffer Gold was down approximately 4.5% at its latest weekly valuation. 

By contrast, traditional energy funds have maintained their momentum. BGF World Energy gained approximately 6.5% during the first half of October, while Guinness Global Energy rose by 5.8%. 

Man Japan CoreAlpha and Pictet Robotics have both lost ground, with technology shares coming under renewed pressure amid concerns about the cost of financing AI infrastructure and the returns that companies will achieve from their investments. 

To put these recent movements into perspective, the following chart shows how five of the top 10 funds have performed since the beginning of the year.  

We have chosen one fund from each of the five areas represented in the table: gold, energy and natural resources, Japan, technology, and UK smaller companies. 

Past performance is not a guide to future performance. 

The differences are striking. 

BGF World Energy has risen by approximately 50% since the beginning of the year, although there have been setbacks along the way. 

Pictet Robotics struggled during the early months but subsequently recovered strongly, while Man Japan CoreAlpha and Aberforth UK Smaller Companies have also made worthwhile gains. 

Ninety One Global Gold has followed a very different path.  

Despite topping the Q3 table, it has experienced enormous fluctuations throughout the year and is now back close to where it started. 

At Saltydog Investor, we believe it is important to monitor performance over different periods rather than relying on a single set of rankings. 

The Q3 results, and what has happened so far in October, provide a particularly good illustration of why this matters.  

Some of the funds that performed best during the quarter have since lost ground, while others have continued to make gains. 

For more information about Saltydog, or to take the two-month free trial, go to www.saltydoginvestor.com