Equity funds selectors should have bought in 2018

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Only eight funds out of the major equity asset classes made a return in 2018, according to FE Analytics.

Click through the gallery above to find out which funds investors should have been in as they actually made a return or, in most cases, the ones that lost less than their competitors.

US equity funds were the best performing out of the main equity asset classes with four of the top five performing funds making a return, according to FE Analytics.

The top performing fund, Hermes US All Cap Equity F, returned 13% over the year to 31 December 2018.

This return was far better than the sector average of -3.04% within the FCA Recognised universe, and -3.3% within the Offshore Mutual universe.

The Hermes fund has its highest sector allocation towards financial services (31.8%), technology (18.2%), health care (12.8%), consumer discretionary (8.9%), and producer durables (8.5%).

The Hermes fund was also the only fund within the top five that was not a growth fund.

The fund was followed by Polen Focus US Growth I at 11.3%, Morgan Stanley US Growth I at 10.9%, Brown Advisory US Sustainable Growth C at 10.2%, and Lombard Odier Priviedge Sands US Growth P at 9.9%.

The top funds were found using FE Analytics that were domiciled in either Luxembourg or Ireland, within the FCA Recognised or Offshore mutual universes, and were available for sale in at least three continental Europe countries. The performance figures are rebased in euros.