The top 10 best-performing funds in October
7th November 2022 13:47
by Douglas Chadwick from ii contributor
October saw a recovery in stock markets after a dismal September. Saltydog Investor looks at the top funds and markets last month.
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In September, more than 97% of the funds that we analyse fell in value. The best, AXA Framlington Biotech, rose 4.5%, but the worst, abrdn UK Real Estate Share fund, fell 20.1%.
But last month there was a dramatic improvement. More than 70% of the funds rose and the best-performing fund, BlackRock BGF World Energy, made nearly 15%.
Here are the top 10.
Saltydog’s top 10 funds - October 2022
| Fund name | Investment Association sector | Monthly % return October 2022 |
| BlackRock BGF World Energy | Commodities and Natural Resources | 14.9 |
| Schroder ISF Global Energy | Global | 14.3 |
| TB Guinness Global Energy | Commodities and Natural Resources | 13.9 |
| Schroder European Recovery | Europe Excluding UK | 9.2 |
| Ninety One Global Special Situations | Global | 8.9 |
| LF Brook Continental European | Europe Excluding UK | 8.7 |
| Artemis SmartGARP European Equity | Europe Excluding UK | 8.7 |
| L&G UK Mid Cap Index | UK All Companies | 7.2 |
| Schroder UK Mid 250 | UK All Companies | 7.2 |
| FTF Martin Currie UK Mid Cap | UK All Companies | 7.2 |
Data source: Morningstar
The top three invest mainly in the large multinational oil companies which, as I explained last week, have benefitted from the rising oil price.
It is hard to be optimistic when there is so much depressing financial news in the media. Global economies have been struggling for some time and it looks as though UK GDP fell in the last quarter. According to the Office for National Statistics (ONS), GDP rose by 0.1% in July, but they estimate a fall of 0.3% in August. Later this week the ONS is expected to announce another decline for September. Â
Inflation is running at more than 10%, and last week the Bank of England raised the Bank rate by 0.75 percentage points to 3%.
The Bank of England also warned that the UK is facing its longest recession since records began, with the economic downturn expected to extend well into 2024.
- Bank issues recession warning after biggest interest rate rise since 1989
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However, stock markets do not always reflect what is actually happening in the economy, and are often an indication of where they think things will be in the future. If they believe that central banks are going to get inflation under control, then this could prompt the end of the economic decline and beginning of a recovery. Â
Our latest look at the monthly performance of some of the major stock market indices also shows an improvement in October. There were a couple that fell – the Shanghai Composite dropped 4.3% and the Hong Kong Hang Seng lost 14.7%, but all the others made gains. The previous month only one market rose.
Stock market indices 2022
| Index | Jan, Feb, March | April, May, June | July | Aug | Sept | Oct | 1 to 4 Nov | Year-to-date |
| FTSE 100 | 1.8% | -4.6% | 3.5% | -1.9% | -5.4% | 2.9% | 3.4% | -0.7% |
| FTSE 250 | -9.9% | -11.8% | 8.0% | -5.5% | -9.9% | 4.2% | 2.5% | -21.9% |
| Dow Jones Ind Ave | -4.6% | -11.3% | 6.7% | -4.1% | -8.8% | 14.0% | -1.0% | -10.8% |
| S&P 500 | -4.9% | -16.4% | 9.1% | -4.2% | -9.3% | 8.0% | -2.6% | -20.9% |
| NASDAQ | -9.1% | -22.4% | 12.3% | -4.6% | -10.5% | 3.9% | -4.7% | -33.0% |
| DAX | -9.3% | -11.3% | 5.5% | -4.8% | -5.6% | 9.4% | 1.6% | -15.3% |
| CAC40 | -6.9% | -11.1% | 8.9% | -5.0% | -5.9% | 8.8% | 2.4% | -10.3% |
| Nikkei 225 | -3.4% | -5.1% | 5.3% | 1.0% | -7.7% | 6.4% | -1.4% | -5.5% |
| Hang Seng | -6.0% | -0.6% | -7.8% | -1.0% | -13.7% | -14.7% | 10.0% | -30.9% |
| Shanghai Composite | -10.6% | 4.5% | -4.3% | -1.6% | -5.6% | -4.3% | 6.1% | -15.6% |
| Sensex | 0.5% | -9.5% | 8.6% | 3.4% | -3.5% | 5.8% | 0.3% | 4.6% |
| Ibovespa | 14.5% | -17.9% | 4.7% | 6.2% | 0.5% | 5.5% | 1.8% | 12.7% |
Data source: Morningstar
Nearly all these indices are still down over the year and one slightly better month does not mean that all our troubles are over. However, it does provide a glimmer of hope. If stock markets have assumed the worst, and that is already reflected in stock prices, then any good news could push markets higher.
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These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.