For the first half of 2024, the top performing funds were driven by high-performance Nvidia, AI and India equities, while UK funds excelled due to the economy’s recovery and growth.
According to financial data provider FE fundinfo’s list of top-performing funds and sectors for the first half of 2024, the top three funds for the first six months of 2024 were iShares MSCI Turkey Ucits ETF GBP (39.68%), NB 5G Connectivity I Acc USD (30.47%) and Janus Henderson Global Technology Leaders I Acc (29.96%). According to the analysts, these funds benefited significantly from their exposure to high-performance stocks like Nvidia, AI sectors and Indian equities.
The Sterling Strategic Bond sector saw the Man GLG Dynamic Income fund leading the way with a return of 11.71%. According to the analysts, top performers in this category were funds with low interest rate sensitivity but high levels of credit risk, as there were no signs of recession or widespread corporate bankruptcies.
Impact of UK election results on fixed income investments
The global equity markets experienced a strong rally driven by AI stocks, despite uneven bond markets. Xtrackers MSCI World Momentum topped the list as the best-performing fund (27.12%).
The global emerging markets universe saw impressive performances in the first half of the year, with country allocation playing a crucial role. Indian equities emerged as one of the strongest markets despite political uncertainties from the 2024 Election. Leading this sector was the GQG Partners Emerging Markets Equity fund, delivering a return of 17.74%.
Topping the list in the UK All Companies universe was JOHCM UK, delivering an outstanding return of 19.99%. According to the analysts, as an active stock picker fund, it benefited from a market where no particular investment style was in favour.
Deputy chief investment officer at FE fundinfo, Charles Younes, said: “The UK All Companies universe witnessed impressive performances, buoyed by the UK economy’s emergence from recession and positive economic surprises such as actual growth data being higher than anticipated.”
Technology and technology innovation was the best-performing sector in the first half of 2024, boasting a performance of 16.76%. Other notable sectors included India/Indian Subcontinent (16.35%) and North America (12.60%).
On the flip side, sectors like Euro Government Bond and UK Index Linked Gilts struggled, with returns of -4.01% and -4.45%, respectively. Latin America experienced the worst performance, with a decline of -15.39%, highlighting the divergence in emerging markets’ fortunes.
Younes added: “The divergence in sector performances, from the tech-led rally to the struggles in Latin American markets, emphasises the critical role of careful sector allocation. In this rapidly changing environment, the value of comprehensive, timely data and in-depth analysis cannot be overstated.’’
