Despite a number of headwinds during 2016, a number of fund managers were able to deliver solid returns as markets proved more resilient against a challenging backdrop.
Best performing funds of 2016
Source: FE Analytics
Unsurprisingly, commodities-focused stocks as well as those from emerging market, commodity exporting countries were the most common among last year’s top performers.
FE Trustnet has looked at the top 25 performing funds to find out which were the most held stocks, according to the most recently available data.
Banco Bradesco
Brazilian bank Banco Bradesco was the most common holding among the 25 best performing funds of 2016 after featuring in the top 10 holdings of five portfolios.
Indeed, the banking and financial services giant was a top pick for the three Brazilian equities and two Latin American funds featuring in the top 25 funds.
The bank saw its share price rise by 65.43 per cent over the year, according to data from Google Finance.
Last year it acquired the Brazilian operations of HSBC in a deal valued at $5.2bn after receiving approval from the Brazilian regulator.
The deal included the acquisition by Banco Bradesco of hundreds of branches and millions of clients, shoring up its presence in the Brazilian banking sector.
The bank was a top holding for the one crown-rated $85.4m BNY Mellon Brazil Equity fund, managed by Rogerio Poppe, which was up by 91.14 per cent in 2016 and the $382.3m HSBC GIF Brazil Equity fund, which increased by 90.72 per cent.
Glencore
FTSE 100-listed commodities broker Glencore was also a common holding and represented in a fifth of the top 25 funds’ portfolios.
The firm soared in 2016, rising by 206.53 per cent.
Performance of Glencore vs FTSE 100 index in 2016
Source: FE Analytics
The stock was held by the $5.1bn BlackRock World Mining Fund, managed by Evy Hambro and Olivia Markham, which returned 83.07 per cent last year.
It was also a top choice for the team behind the £777.4m JPM Natural Resources fund. Led by Neil Gregson, the three crown-rated fund returned 82.08 per cent in 2016.
Lukoil
With Russian listed companies performed very strongly in 2016, five Russian equity strategies featured among the top 25 funds of 2016.
Russian stock representation was further boosted by the strong performance of commodities stocks last year, with several firms featuring in commodities-focused managers’ portfolios.
Performance of the MSCI Russia index vs MSCI World in 2016
Source: FE Analytics
Indeed, Russian oil producer Lukoil was another top 10 holding for at least five funds in the best 25 of 2016.
The largest Russian oil firm with more than 10trn barrels in proven oil reserves rose by 63.16 per cent last year.
As well as improved sentiment towards Russian firms, the firm was further aided by a halt in the slide of oil prices and more coordinated action by the Organisation of Petroleum Exporting Countries cartel to manage supply.
The stock was held by Pictet Russian Equities – the second best performing fund of 2016 – which rose by 107.31 per cent during 2016 under the management of Hugo Bain, Klaus Bockstaller and Christopher Bannon.
It was also held by HSBC GIF Russia Equity fund, also a top five performing fund. Managed by Douglas Helfer, the fund returned 93.34 per cent in 2016.
Other top 10 stocks held by at least five of the best performing top 25 funds during 2016 included: Russian retailer Magnit, US gold miner Newmont Mining, Russian gas producer NovaTek, Moscow-headquartered bank Sberbank and Brazilian mining firm Vale.