5 Biggest and Best UK Equity Funds

Parts of the market that did well in 2016 have struggled this year, including oil and gas. Smaller companies have outperformed larger firms

Simon Dorricott 26 October, 2017 | 4:02PM
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In sterling terms investors in the UK equity market had a tough time in 2016, with significant underperformance shown by the FTSE All-Share Index versus the MSCI AC World Index. Looking at sector returns for the year, the UK unsurprisingly followed world markets, with basic materials and oil and gas leading the way. 2017 has seen some reversals with those sectors that did well in 2016 struggling this year, and vice versa.

What does this all mean for UK equity fund performance? The obvious change has been in terms of market-cap, with small-and mid-caps outperforming and pushing these categories to the top of the performance tables in 2017.

Top Performers Over 3 Years

The Old Mutual UK Smaller Companies Focus fund has produced exceptional returns over the past three years, with a significant part of these being attributable to the current manager Nick Williamson. Williamson became lead manager in January 2016 having previously been deputy manager to Dan Nickols who leads the mid- and small-cap team. Williamson is managing the fund using the established team approach which combines top-down and bottom-up inputs. Debate is important throughout the process.

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About Author

Simon Dorricott  is a Senior Fund Analyst for Morningstar

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