TD Recommended Funds - Highest and Lowest returns

Highest returning funds last quarter

The best performing fund in our TD Recommended Funds list over the first quarter was BlackRock Gold & General, which gained 42.8% over the three-month period. The fund invests primarily in gold mining companies, which have had a strong rally. The FTSE Gold Mines index recorded its largest monthly gain in February since September 1988, and the gold price rose 10.4% in February alone.

TD Recommended Funds providing the highest returns in Q1
BlackRock Gold & General View report Invest now
First State Global Resources View report Invest now
JPM Emerging Markets Income View report Invest now
First State Global Listed Infrastructure View report Invest now
M&G European Corporate Bond View report Invest now
BlackRock Global Property Securities Equity Tracker View report Invest now
Guinness Global Energy View report Invest now
Legg Mason IF Royce US Smaller Companies View report Invest now
Veritas Global Equity Income View report Invest now
Schroder Asian Income View report Invest now

The rebound in resources is reflected in the strong performance of First State Global Resources, which was the second best performer over the quarter, and Guinness Global Energy.

The First State fund focuses on companies around the globe which are involved in the discovery, development, extraction, processing and distribution of natural resources. The largest positions are in mining stocks BHP Billiton and Rio Tinto, but there is also exposure to gold and other precious metals.

Other funds which performed well over the quarter cover a diverse array of asset classes and include First State Global Listed Infrastructure, M&G European Corporate Bond, BlackRock Global Property Securities Equity Tracker, Legg Mason IF Royce US Smaller Companies and Veritas Global Equity Income.

JPM Emerging Markets Income and Schroder Asian Income were both in the top 10 over the period. Asia’s income story is interesting. These are markets which are still inefficient because many Asian investors are traders. Skilled long-term fund managers are able to find growth companies with attractive yields. Emerging markets are still developing but we are seeing a fundamental shift in the corporate culture there, with companies starting to think differently about returning assets to shareholders.

Past performance is not a reliable indicator of future results

Relevant resources stocks
BHP Billiton View report Invest now
Rio Tinto View report Invest now

TD Recommended Funds - Highest and Lowest returns in Q1 2016

Past performance is not a reliable indicator of future results
Source: Morningstar Direct as at 31st March 2016. Total returns in GBP.

Lowest returning funds last quarter

H2O MultiReturns is an absolute return fund which aims to achieve positive returns by only focusing on investments in which the managers have conviction. It is reliant on the skill of the managers who are not afraid to make big bets from time to time. As a result there are periods of time when the manager’s views are not rewarded, and the first quarter was just such a period with the fund falling 8.4%. Nevertheless it remains a good longer-term investment.

TD Recommended Funds providing the lowest returns in Q1
H2O MultiReturns View report Invest now
Man GLG Japan Core Alpha View report Invest now
Artemis UK Select View report Invest now
MFM Slater Growth View report Invest now
BlackRock UK View report Invest now
Man GLG Undervalued assets Profile View report Invest now
CF Woodford Equity Income View report Invest now
Schroder Tokyo View report Invest now
Standard Life Global Absolute Return Strategies View report Invest now
Old Mutual UK Alpha View report Invest now

Japanese equities had a difficult quarter, with Man GLG Japan Core Alpha and Schroder Tokyo both among the lowest returning funds.

A number of UK equity funds also feature in the lower reaches of the performance numbers, including Artemis UK Select, MFM Slater Growth and BlackRock UK. All, though, look poised to pick up again in the coming year.

Standard Life Global Absolute Return Strategies (GARS) was another absolute return fund which struggled over the quarter. The fund suffered its worst quarterly performance since the height of the financial crisis in 2008 against what has been a turbulent backdrop for global markets. The ongoing volatility in global risk markets had a negative impact on a number of the fund’s equity strategies. In the US, the divergent fortunes of technology and small-cap stocks also cost the fund in terms of performance.

Past performance is not a reliable indicator of future results

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