Indian equities have also been a surprise package, with some funds posting returns in excess of 60 per cent, while biotech has once again defied gravity delivering close to 50 per cent.
Performance of funds vs index in 2014
Source: FE Analytics
These have been the standout asset classes, but the ability of at least some active managers to add value has seen a number post double digit returns even as their benchmarks have struggled.
Among those that have added the most value include Neil Woodford’s SJP UK High Income fund, Terry Smith’s Fundsmith Equity fund and Angus Tulloch’s First State Asia Pacific Leaders fund, which have returned 10.85, 23.03 and 20.41 per cent, respectively.
So what about next year? Which asset classes do you think are set to perform best, and which funds are you tipping to take advantage? Will next year signal a return to rallying developed equity markets, or will risk-averse managers with an ability to protect against the downside fair best?
If you’d like to get your picks for next year analysed by experts including those in FE Research, leave the name of the funds and trusts and the reason why you’re backing them in the comments section below, or email us at editorial@financialexpress.net.