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Contrarian calls dominate list of top performing funds of 2016

Joanna Faith
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Joanna Faith

Funds focusing on some of the more ‘unloved’ asset classes at the moment, such as commodities and emerging markets, have been among the top performers of 2016 so far, according to figures.

Investors have turned their backs on these areas of investment in recent months, but fund research firm FundCalibre said people who took the plunge in January and invested in these so-called contrarian asset classes have been well rewarded.

The top performing fund so far this year is BlackRock Gold & General fund, which invests in in gold, mining and precious metal- related shares. It has returned 38% year-to-date.

Five of the top ten were emerging markets funds including Aberdeen Latin America in second place, Lazard Emerging Markets in 4th, Aberdeen Emerging Markets Equity in 8th, Standard Life Investments Emerging Market Debt in 9th and M&G Global Emerging Markets in 10th.

YMoney Top10 Perfomingfunds

Clive Hale, director at FundCalibre, said: “Markets have been all over the place since the start of the year and it’s been the unloved areas that have fared best.

“Gold has come into its own as investors have flocked to it as a perceived safe haven – I prefer to call it an insurance policy against central bank stupidity. It’s too early to say if the precious metal has bottomed, but anyone taking the plunge in January has been very well rewarded.”

Hale said it was too early to say that “emerging markets are finally coming out of the doldrums” but it is a reminder that “you can make money in all types of market conditions”.