5 Best Performing Funds

It has been five years since the FTSE 100 bottomed out at 3,500 in the depths of the global recession. Since then the market has nearly doubled; boosting UK funds

Emma Wall 7 March, 2014 | 4:32PM
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Five years ago, in the depths of the credit crisis the FTSE 100 fell to 3,512. The public purse had been plundered, the UK banking system was shot - and pessimism abounded.

But if you had been bold enough to take a punt on the sliding stock market your contrarian investment would have paid off. Since the lows of March 2009, the FTSE 100 has nearly doubled – and positive economic data and a thriving corporate sector looks set to push the Blue Chip index up further. Even Britain’s beleaguered banks are on the up, with Lloyds widely expected to re-introduce a dividend for shareholders later this year.

Over the last five years the best performing funds have been those with exposure to the UK recovery. We reveal the biggest climbers – and what analysts think of their future prospects.

Cazenove UK Smaller Companies

5 Year Return: 41.5%

This Morningstar analyst Bronze Rated fund has experienced manager Paul Marriage at the helm and invests in companies that offer differentiated products, are leaders within niche markets, exhibit margin growth, and have a high-quality management team in place.

Fidelity UK Smaller Companies

5 Year Return: 40%

This Bronze Rated fund is run by industry darling Alex Wright. Wright has been appointed the true successor to Anthony Bolton and took over the management of Fidelity’s flagship Special Situations fund at the beginning of the year. He continues to run the Smaller Companies fund with aplomb, although this fund is now soft-closed thanks to great popularity.

Standard Life UK Equity Unconstrained

5 Year Return: 40%

Standard Life's unconstrained fund range represents the team's best ideas in the UK market – and was the best performing fund of 2012 thanks to its mid-cap exposure. Manager Ed Legget consistently delivers, but the fund can be volatile. One for a long-term holding.

Invesco Continental European Small Cap Equity

5 Year Return: 38%

This fund invests in small companies domiciled in Europe, meaning it is sensitive to sentiment within Europe. As a result it can be volatile. In 2011 the fund lost of quarter of its value, but in 2012 it recovered 32% and last year returned an incredible 48% to investors. This fund should only hold a minor allocation in your portfolio, but can deliver spectacular returns.

Investec UK Smaller Companies

5 Year Return: 36%

Following the departure of manager Philip Rodrigs in January analysts have placed this fund Under Review.

“We view Rodrigs’ departure as a significant loss to the fund as he was the key attraction here. We will be meeting with Hsia in the near future to discuss his plans for the fund going forward,” said Morningstar analyst Samuel Meakin. 

We used Morningstar's Fund Screener to determine the best performing funds over the last five years

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASI UK Unconstrained Equity R Acc273.44 GBP-1.21Rating
Fidelity UK Smaller Companies A-Acc403.13 GBP-0.78Rating
Schroder UK Dynamic Smaller Coms C Acc6.76 GBP-0.34Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar