Funds with a value bias outperformed both benchmarks and peers in 2022 FTSE 100 large cap index outperformed the broader All Share index which includes smaller shares Capital preservation funds topped the charts ... and funds with a growth bias and smaller companies investments struggled The Star Performers Of 2022
2022 was a tough year for global markets – with equities and bonds falling in unison as inflation soared, economic uncertainty prevailed and political leaders offered little respite. However, not all investments lost money in the tumult.
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Gates Capital Management Reduces Risk After Rare Down Year [Exclusive]
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for read more
After a near decade run of outperformance, the tide turned on growth-style investments and value came up trumps. Of the Wealth Shortlist fund managers, Ben Whitmore at Jupiter Asset Management was amongst the top performers, with two funds in the top five for 2022 returns.
Whitmore's value-bias had been out-of-favour for a stretch as tech-heavy funds dominated the lockdown years, but as the year opened with concerns about the US economy, value investments began a rally, extended by the war in ukraine as soaring commodities prices boosted oil and gas and mining stocks.
The FTSE 100 was also a beneficiary of the commodity rally, outperforming the broader FTSE All Share which includes smaller, more economically sensitive, companies by 6%. But the top performing Wealth Shortlist fund of 2022 was Man GLG Japan CoreAlpha, a value-biased fund, invested in financials, consumer and industrial companies, which underwent a change in management in 2021.
It outperformed the FTSE Japan by an impressive 22% after years of underperformance – showing the importance of investing in a diverse range of styles as well as asset classes and geographies. Capital preservation fund Pyrford Global Total Return also featured in the top 10 – a fund that always lags a market rally, but aims to shine in times of volatility and market stress, though the target of beating the Retail Price Index inflation measure proved too tough in a year of record price rises.
Of course, where there are winners, there are losers, and in intentionally adding funds on the Wealth Shortlist that perform differently from one another it means some managers struggled in 2022. Growth-biased Baillie Gifford American was the worst performer of 2022, losing more than half its value, and ASI Global Smaller Companies – a fund with a compelling long term track record – also underperformed peers and benchmark due to its smaller companies and growth style.
UK smaller companies funds from Amati and Royal London also lost value, and rounding out the bottom five was First State Japan Focus – one of 2021's stars, but the quality-growth bias hurt in 2022.”
Top Performing Wealth Shortlist Funds Of 2022
| Fund || 2022 performance || Benchmark || 2022 Benchmark performance || Fund performance vs benchmark |
| Man GLG Japan CoreAlpha || 16.77% || FTSE Japan || -4.8% || 21.57% |
| Jupiter Global Value Equity || 16.2% || FTSE All World || -7.3% || 23.5% |
| Jupiter Income Trust || 6.39% || FTSE All Share || 0.34% || 6.05% |
| Jupiter India || 5.26% || FTSE India || 3.64% || 1.62% |
| Legal & General UK 100 Index || 5.18% || FTSE All Share || 0.34% || 4.84% |
| Jupiter Asian Income || 4.57% || FTSE Asia Pacific ex Japan || -5.88% || 10.45% |
| Pyrford Global Total Return || 1.53% || Retail Price Index || 14% || -12.47% |
| Legal & General UK Index || 0.78% || FTSE All Share || 0.34% || 0.44% |
| Artemis Income || 0.4% || FTSE All Share || 0.34% || 0.06% |
| Fidelity Global Dividend || 0.17% || FTSE All World || -7.3% || 7.47% |
Article by Emma Wall, Head of Investment Analysis and Research, Hargreaves Lansdown