It has been a nightmare start to the year for global markets and Britain’s FTSE 100 index has not escaped the pain, falling 5.5pc so far in 2016 to trade below 5900.
Further concern over slowing economic growth in China has triggered the latest falls but, as far as Britain’s stock market is concerned, the real crash started last spring after the FTSE 100 hit a record 7104 on April 27.
It has been all downhill since, with the index falling more than 20pc from its peak and officially entering a bear market this week. By January 22 the index had recovered a little and was 17pc below the April high.
Investors and pension savers will have seen the value of their investments fall. Tracker funds, which blindly follow the ups and downs of a stock exchange, will have lost roughly the same as the market. The best have low charges that mean investor returns move closely in line with actual market movements.
BlackRock 100 UK Equity, one the cheapest trackers, costing 0.07pc a year, has virtually matched the market’s loss. It is down 18pc since April 27, as this chart from FE Trustnet shows.
Unlike trackers, the peformance of active funds depends on which shares they have picked.
We asked FE Trustnet to name the best and worst performing UK funds during the bear market.
• Reader service: Invest in funds with Telegraph Investor
The winners
The vast majority of funds lost money, but a small number weathered the storm - some even posting healthy gains.
The performance of MFM Techinvest Special Situations, up 22pc, stands out. This little-known fund, holding just £10m in assests, hunts for hidden gems outside the FTSE 100 index.
The approach has paid off. These smaller sized companies tend to have more of a domestic flavour and are less susceptible to global headwinds, which is why they have not seen their share prices plunge to the same degree.
As the table below shows, other smaller company specialist funds have managed to keep their heads above water and make money.
| Fund name |
Performance since April 27, 2015 |
|---|---|
| MFM Techinvest Special Situations |
22.4pc |
| Liontrust UK Smaller Companies |
10.9pc |
| Chelverton UK Equity Growth |
9.4pc |
| MFM Bowland |
9pc |
| TB Amati UK Smaller Companies |
8.7pc |
| ConBrio Sanford Deland UK Buffettology |
7.8pc |
| Wood Street Microcap Investment |
7.3pc |
| Standard Life Investments UK Smaller Companies |
6.9pc |
| The PFS Discretionary Unit |
6.3pc |
| Unicorn UK Growth |
6.2pc |
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The losers
The ten worst performers during the bear market are highlighted below.
Three “recovery” funds appear. These funds buy out of favour shares that are unloved by the market but could be due a change in fortunes. The fund managers look for businesses suffering from a specific problem they think will be resolved.
But the approach has not worked well since the FTSE 100’s April peak, with Standard Life Investments UK Equity Recovery, Schroder Recovery, M&G Recovery, posting heavier falls than the FTSE 100.
| Fund name |
Performance since April 27, 2015 |
|---|---|
| Standard Life Investments UK Equity Recovery |
-27.7pc |
| Dimensional UK Value |
-24.8pc |
| Schroder Recovery |
-23.2pc |
| M&G Recovery |
-22.6pc |
| Scottish Widows UK Select Growth |
-22pc |
| UBS UK Equity Income |
-21.6pc |
| Aberdeen UK Equity |
-21.4pc |
| UBS UK Opportunities |
-21.4pc |
| Cavendish UK Select |
-21.4pc |
| Aberdeen Global UK Equity |
-21.3pc |
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