Top Picks of the Month – December 2021
We show here a selection of funds that might be of interest to you. They were chosen either for their outstanding performance, which is likely to continue, or for their potential for attractive returns or diversification given current and expected market conditions.
Global Equities rose in December as initial fears and threats related with the economic impact of Omicron variant vanished. The monthly rebound was sharp and most equity indices around the world ended 2021 near record highs. Bond yields in US and Europe rose in a risk-on environment as central banks became more hawkish. Oil prices rebounded significantly to close an outstanding year, supported by a weaker dollar and improved economic sentiment.
The alpha generation was particularly strong across our fixed income funds in December with emerging markets debt funds paving the way: Barings EM Local Debt (+2.3%), Vontobel EM Debt (+1.7%), BNY Mellon EM Corporate (+0.6%) and T.Rowe Price Responsible EM Corporate (+0.5%). Elsewhere in corporate credit, Barings Global High Yield (+2%) and Pimco Capitial Securities (+1.5%) posted a solid month.
Threadneedle Global Technology (+5.7%) outperformed its benchmark by 304 bps, its overweight in US semiconductors and low exposure to volatile and expensive Nasdaq stocks. M&G Global Listed Infrastructure (+4.2% vs. +4% for the index) and Vontobel mtx Sustainable Asian Leaders (+2.3% vs. +1.4%) were the two other notable outperformers during the month.