Indian equity and energy funds take the top spot for 2021 returns

February 15, 2022

Indian equity and energy-focused funds achieved a u-turn in their 2021 performance compared to the previous year, according to research from Fairview Investing and data from FE fundinfo, with the four worst funds of 2020 all featuring in 2021’s list of the top six best performers.

Soaring energy prices due to supply chain cuts means that six of the ten best performing funds in 2021 were energy-focused mandates.

The $433m Schroder ISF Global Energy SICAV took first place in the Investment Association universe with a total return of 48.8%, while the £32.4m TB Guinness Global Energy sterling – a unit trust launched in 2008 – followed closely with gains. by 45.7%.

Sister fund Guinness Global Energy, a $256m ICVC domiciled in Ireland and run by the same managers, came in fourth place with a total return of 45.5%, although it was the worst performer in 2020.

AIC survey: managers vote for renewable energy infrastructure for 2022

GS North American Energy & Energy Infrastructure Equity, BlackRock GF World Energy and Pimco GIS MLP & Energy Infrastructure ranked fifth, sixth and eighth, respectively, with total returns of 44.3%, 43.9% and 43.4%.

Indian equity funds also fared well in 2021, with 20% of the top ten list populated by such mandates, despite being the emerging market laggards of 2020.

Ben Yearsley, Managing Director of Fairview Investing, said: “Away from energy, India was probably last year’s surprise package. When you think back to India’s spring Covid rate spike, it would have been a brave person to have made India one of the go-to stock exchanges.

“However, a successful vaccination program and political stability have allowed the long-term growth story to reassert itself.”

He added that it is “good to see an Indian fund with sustainability at the core performing exceptionally well”, with manager Mike Sell’s $33.4m Luxembourg-domiciled Alquity Indian Subcontinent achieving the seventh best total return of 2021 at 43.6%.

The other Indian equity fund to perform in the top ten was Nomura India Equity, a $282m mandate domiciled in Ireland and managed by Vipul Mehta, with a total return of 45.6%.

Conversely, the ten worst performers of 2021 included a mix of Chinese, Latin American and frontier market equity funds.

“The bottom of the fund universe was mixed,” Yearsley said. “China funds were unsurprisingly near the foot after investors took fright at renewed regulatory crackdowns – however, who hadn’t factored political risk into a China thesis?

“Latin America and Brazil were also at the bottom of the table because of more political shenanigans.”

Robert Mumford’s GAM Star China Equity and Hyomi Jie’s Fidelity China Consumer found themselves in fourth and tenth place respectively for the worst performance, having lost 26% and 24.1% throughout the course of 2021. Elsewhere, HSBC GIF Brazil Equity came in third place with a loss of 28.1%, while HSBC MSCI Turkey and JPM Brazil Equity fell by a respective 25.6% and 25.2%.

China: looking beyond the turbulence

The second worst performing fund, according to Yearsley’s research, was the £164.2m LF Equity Income fund – previously Woodford Equity Income – which fell 34.4%.

The £3.4m Garraway Absolute Equity fund lost the most money, however, having fallen 34.7%.

Yearsley added: “This fund has got to be among the most volatile because it’s often at the top or bottom of the AI universe.”


French Budget targets trusts in low tax jurisdictions

An article recently added to the 2022 French budget extends the scope of anti-tax avoidance rules to certain trust situations, according to Virginie Deflassieux, director of French taxation at BDO in Guernsey. In a briefing note for BDO, she said that the National...

Bitcoin is Slowly Taking Gold’s Market Share

Goldman Sachs: Bitcoin is Slowly Taking Gold’s Market Share After criticizing that Bitcoin is not a good investment plan, Goldman Sachs is now recommending its clients to try Bitcoin as it is slowly replacing gold! According to its latest 2020 research note to...

Britcoin – what is it? Advantages and disadvantages.

Laith Khalaf, head of investment analysis at AJ Bell claimed that Britcoin could cause giant disruption in the banking area if it is introduced, as well as growing the chance of a run on business banks in instances of economic stress.The UK's central financial...

Global Corporation Tax

The last twenty years have been tumultuous for the understanding of taxation in the accounts of multinational companies. The investor in this sector has gone around the roller coaster if he has sought to interpret the tax owed by the companies in which he held the...


Jersey to close tax loophole on property transactions

Standard Life Bank Isle of Man was fined £247,324 after an investigation by the Island Financial Services Authority found "serious regulatory violations". The IOMFSA required Standard to pay a discretionary civil penalty imposed under section 16 of the Act and in...

What Is An Umbrella Company?

When you are an entrepreneur, you may be regularly asked how you are going to provide your services to your clients. This means whether you are going to contract through a PAYE agency, through your own shareholding company, or through an umbrella company. To be able...

Need a Bank Account?

Get in touch with us today!