FE Analytics data unveils summer 2023's winners and losers for sectors and funds

Data supplied by FE fundinfo, a global leader of fund information, technology and services has highlighted which sectors and funds have been this summer’s winners and losers.

In a recent comprehensive analysis of the investment landscape – covering the period from 1 July 2023 to 30 September 2023 – data from FE Analytics has shown which sectors and funds have performed best and worst over the summer months, while also seeing which funds were the most researched.

The data looks at the most influential players and top-performing funds in the industry while also revealing those that have had a summer to forget.

Top five performing sectors

Certain sectors have stood out as shining stars in the third quarter of 2023.

The best performing sector over the summer was the India/Indian Subcontinent with a three-month cumulative performance of 7.14%, the India/Indian Subcontinent sector has surged ahead, buoyed by robust economic growth, strength in US Dollar, and a resilient domestic market. Indian equities also tend to work oppositely to Chinese equities, which suffered last quarter on back of weakening economic growth.

In second the commodity/natural resources sector has had a positive summer, registering a substantial 4.79% growth during this period while the USD High Yield Bond sector was third having delivered a 3.50% return, offering attractive income opportunities in a low-yield environment.

Making up the rest of the top five are the Global High Yield Bond sector (3.12%) and the EUR High Yield Bond sector (3.10%)

Bottom five performing sectors

For every success story, there is also a story for those that struggled.

The sector that struggled the most over these three months was the infrastructure sector that recorded a downturn of -5.09% This poor period could be due to uncertainties surrounding infrastructure investment and funding, while potential delays in government projects, supply chain disruptions, and labour shortages could have hindered progress in this sector.

Only performing a little better was the UK Index Linked Gilts which saw a fall of -4.58%: The UK Index Linked Gilts sector struggled primarily due to rising interest rates, causing a decline in bond prices. Investors shifted their focus towards higher-yielding assets, impacting the demand for index-linked gilts.

The rest of the bottom three were made up of the European Smaller Companies sector (-3.70%), the Healthcare sector (-3.09%) and the Europe Excluding UK sector (-2.25%). European equities were down last quarter due to Chinese and global manufacturing slowdown.

Top five performing funds

The summer months have proved successful for a number of funds.

Leading the pack is the HANetf Sprott Uranium Miners UCITS ETF Acc GBP fund, who recorded a three-month cumulative performance of 47.31%.

Following closely in second is the iShares MSCI Turkey UCITS ETF GBP fund with a return of 38.26% while the HSBC MSCI Turkey NAV GBP fund had a return of 38.11% seeing it come third.

The rest of the top five was made up by the Investors in the WS Guinness Global Energy I Acc fund (19.20%) and the Schroder ISF Global Energy A Dis NAV GBP AV fund (18.18%).

Bottom five performing funds

July to September proved less smooth sailing for several other funds.

Having the hardest three-month period was the BlackRock LifePath 2025-2027 P fund which saw a fall of -98.98%.

Not fairing much better was the HANetf Electric Vehicle Charging Infrastructure UCITS ETF Acc GBP fund which recorded a loss of -26.80%, while the Invesco Solar Energy UCITS ETF Acc GBP fund came third from bottom with –23.95%.

The final two in the bottom five were the HAN Medical Cannabis and Wellness UCITS ETF USD fund (-23.03%) and the Luxembourg Selection Fund - Active Solar C USD fund (-22.04%).

Top five funds most researched / reports run by

Vanguard's LifeStrategy 60% Equity fund was not only the most researched fund – with 17,955 searches made over the course of the three summer months – but also had the most reports run with 13,064 reports

In second, Fundsmith's Equity fund closely followed with 16,835 searches and 12,956 reports, reaffirming its position as a highly sought-after investment choice, while Vanguard’s LifeStrategy 80% Equity fund came in third place with 14,883 searches and 11,046 reports.

The final two places in the top five were taken by Vanguard’s LifeStrategy 40% Equity fund (12,748 searches and 10,168 reports) and abrdn’s Asia Pacific Equity fund (10,403 searches and 9,466 reports).

Charles Younes, Deputy Chief Investment Officer, FE investments, said:

"During the summer the markets have finally embraced the higher for longer rhetoric on the back of sustained inflationary pressures. Unsurprisingly, sectors with the most interest rates sensitivity have suffered.

“Better than expected macro data, as well as OPEC decisions, have pushed oil price closed to $100. Cyclical equity sectors best benefitted from that trend. Despite the summer optimism, we remain cautious about the global outlook and won’t be surprised if the winners from this summer would be the losers this winter.”