Interactive Investor

Leading funds in the final quarter of a tough year

19th December 2022 13:25

Douglas Chadwick from ii contributor

All the fund sectors Saltydog Investor tracks fell in value in 2022, but there are two bright spots.

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After a relatively encouraging October and November, most stock markets fell in December. There is still time for a final “Santa rally”, but it will have to start soon.

So far this month, the FTSE 100 has fallen by 3.2% and the FTSE 250 is down 3%. There are many other stock market indices that have performed worse. The German DAX has fallen by 3.5%, the French CAC 40 is down 4.2%, the S&P 500 has lost 5.6%, and the Brazilian Ibovespa has dropped by 8.6%.

Stock market indices 2022

IndexJan, Feb, MarchApril, May, JuneJuly, Aug, SeptOctNov1 to 18 DecYear-to-date
FTSE 1001.8%-4.6%-3.8%2.9%6.7%-3.2%-0.7%
FTSE 250-9.9%-11.8%-8.0%4.2%7.1%-3.0%-20.8%
Dow Jones Ind Ave-4.6%-11.3%-6.7%14.0%5.7%-4.8%-9.4%
S&P 500-4.9%-16.4%-5.3%8.0%5.4%-5.6%-19.2%
NASDAQ-9.1%-22.4%-4.1%3.9%4.4%-6.6%-31.6%
DAX-9.3%-11.3%-5.2%9.4%8.6%-3.5%-12.5%
CAC40-6.9%-11.1%-2.7%8.8%7.5%-4.2%-9.8%
Nikkei 225-3.4%-5.1%-1.7%6.4%1.4%-1.6%-4.4%
Hang Seng-6.0%-0.6%-21.2%-14.7%26.6%4.6%-16.9%
Shanghai Composite-10.6%4.5%-11.0%-4.3%8.9%0.5%-13.0%
Sensex0.5%-9.5%8.3%5.8%3.9%-2.8%5.3%
Ibovespa14.5%-17.9%11.7%5.5%-3.1%-8.6%-1.9%

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

All the stock market indices we track are currently lower than they were at the beginning of the year, apart from the Indian Sensex, which is up 5.3%.

Having made losses in the first three quarters of the year, most of these indices are still on track to make gains in the fourth quarter. The only one that is really struggling is the Brazilian Ibovespa. The leading index so far this quarter is the German DAX, which has risen by 14.7%. Then it is the Dow Jones Industrial Average, which has gone up by 14.6%, the Hong Kong Hang Seng, up 12.9%, and the French CAC 40, which has returned 12%.

Most of the leading funds in the final quarter of this year are currently from the three European sectors: Europe including the UK, Europe excluding UK, and European Smaller Companies.

Here are the top 20 based on their returns from the beginning of October until the end of last week.

Leading funds since 1 October 2022

Fund NameInvestment Association sector% Return
Oct 2022Nov 20221 to 18 Dec1 Oct to 18 Dec
Schroder European RecoveryEurope Excluding UK9.28.3-1.616.4
LF Brook Continental EuropeanEurope Excluding UK8.78.3-2.514.8
M&G European Sustain Paris AlignedEurope Including UK6.18.3-0.514.3
Schroder UK Mid 250UK All Companies7.210.2-3.214.3
Janus Henderson European Smaller CompaniesEuropean Smaller Companies6.78.0-1.213.8
Premier Miton UK Value OpportunitiesUK All Companies5.79.3-1.613.7
Invesco European Smaller CompaniesEuropean Smaller Companies5.58.1-0.413.6
LF Lightman EuropeanEurope Excluding UK6.38.2-1.413.5
L&G Future World Sustainable  European Equity FocusEurope Excluding UK4.48.7-0.213.3
FTF Martin Currie UK Mid CapUK All Companies7.28.4-2.513.3
Barings German GrowthSpecialist6.68.2-2.113.0
abrdn European Smaller CompaniesEuropean Smaller Companies4.28.4-0.112.9
Artemis UK SelectUK All Companies5.99.8-3.012.8
Aviva Investors UK Listed Small & Mid CapUK All Companies5.99.6-2.812.8
Artemis SmartGARP European EquityEurope Excluding UK8.75.6-1.712.8
Royal London UK Mid-Cap GrowthUK All Companies5.79.8-2.912.8
Unicorn UK IncomeUK Equity Income2.610.9-1.112.6
Baillie Gifford EuropeanEurope Excluding UK3.910.2-1.712.6
Allianz Continental EuropeanEurope Excluding UK5.98.9-2.412.6
BlackRock Continental EuroEurope Excluding UK6.18.3-2.112.5

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

Although the overall returns are pretty good, the best fund is up 16.4% in less than three months, all these funds have fallen this month.

The leading funds in December are currently from the China/Greater China sector. As I mentioned last week, the sector had a terrible October, losing 17.2%, but rebounded in November. The funds from this sector have continued to perform well in December, when most others are going down.

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