Which investment trusts had the highest returns in 2021? Presentation of the top 5 achievements | HEDGE GUIDE for comparing and ranking investment funds

Investment trust returns in 2021 have been strong overall. Indeed, almost 90% of the funds that gave positive returns represented the total return (based on the reinvestment of distributions) for one year. And about 13% of the funds returned more than 30% (see: Nihon Keizai Shimbun “Investment trusts in 2021, near 90% of investment profits” survey by the QUICK Asset Management Institute).

In this article, we will discuss the top 5 funds with annual returns in 2021 (excluding bullish-bearish funds).

* This article is intended to provide information to investors and is not intended to solicit investment in specific products or funds. Please make investment decisions at your own discretion.

Table of Contents

  1. Return of the 5 best funds in 2021
  2. eMAXIS Neo Virtual Reality
  3. UBS Crude Oil Futures Fund
  4. Vietnam Lotus Fund
  5. Opening of HSBC India Infrastructure stock
  6. US Energy Revolution Fund (annual settlement type) No currency hedging
  7. summary

1. Top 5 funds with 2021 returns

Fund name Classification return 2021
eMAXIS Neo Virtual Reality Index fund 85.4%
UBS Crude Oil Futures Fund Index fund 80.1%
Vietnam Lotus Fund Active fund 79.3%
Opening of HSBC India Infrastructure stock Active fund 65.0%
US Energy Revolution Fund (annual settlement type) No currency hedging Active fund 64.5%

Among the 5 best returns, 2 index funds and 3 active funds.

Let’s take a closer look at each fund.

2. eMAXIS Neo Virtual Reality

  • Classification of investment trusts: Index fund (equities of developed countries)
  • Yield: 85.4%

The best performer in 2021 was the index fund “eMAXIS Neo Virtual Reality”. The fund will invest in the shares of virtual reality companies worldwide (including Japan) listed on the US Financial Instruments Exchange.

It is part of the “eMAXIS Neo” series of no-cost thematic-type index funds and targets investment results linked to the S&P Kensho Virtual Reality Index (including dividends, yen conversion basis). The index selects companies that will drive the fourth industrial revolution, such as IoT (Internet of Things) and AI (Artificial Intelligence). And the US equity ratio is the highest at around 80%.

3. 3. UBS Crude Oil Futures Fund

  • Classification of investment trusts: Index fund (commodities)
  • Yield: 80.1%

The second highest return in 2021 was 80.1% from the UBS Crude Oil Futures Fund. The fund is an index fund which targets investment results linked to the “UBS Bloomberg CMCI Index WTI Crude Oil Index (Yen Conversion Basis)” which mirrors the WTI Crude Oil Futures Index.

WTI crude oil futures in 2021 rebounded strongly after economic normalization from the Corona disaster. The fund also had strong returns as it grew 55.01% annually.

Four.Lotus Vietnam Fund

  • Classification of investment trusts: active funds (emerging market equities)
  • Yield: 79.3%

The third place yield in 2021 was 79.3% from the “Vietnam Lotus Fund”. The fund is an active fund that invests in Vietnamese stocks listed on Vietnamese stock exchanges and stocks of Vietnam-related companies listed on stock exchanges around the world.

The Vietnamese market in 2021 increased following the recovery of economic activity after the Corona disaster. The Vietnam VN Index, which is a representative stock index, grew by 35.73% annually and hit an all-time high in November 2021.

Five. Opening of HSBC India Infrastructure stock

  • Classification of investment trusts: active funds (emerging market equities)
  • Yield: 65.0%

The fourth highest return in 2021 was the HSBC India Infrastructure Equity Open. The fund is an active fund that invests in the shares of infrastructure-related companies (roads, railways, electric power, telecommunications) listed on Indian stock exchanges such as the Bombay Stock Exchange and the National Stock Exchange.

At the end of February 2022, the number of shares included is 36, and the main shares included are as follows.

  1. Larsen and Tubro 9.6%
  2. Dependent industries 5.2%
  3. Indian State Thermal Power Corporation 4.1%
  4. Adani Ports and Special Economic Zone 3.9%
  5. Tata Power 3.7%

The Indian stock market rose sharply in 2021 and the SENSEX index, which is a representative stock index, rose by 21.99%. Additionally, infrastructure companies rose sharply and fund returns exceeded 60%.

6.US Energy Revolution Fund (annual settlement type) No currency hedging

  • Classification of Investment Trusts: Active Fund (North America)
  • Yield: 64.5%

The 5th place in performance in 2021 was “US Energy Revolution Fund (annual settlement type) without currency hedging”. The fund is an active fund whose primary investment objective is MLP (Master Limited Partnership), which invests in energy-related companies listed on the US Financial Instruments Exchange.

MLP’s performance in 2021 has improved. In addition to the sentimental improvement associated with rising crude oil prices, the expected dividend yield was in the 7% range, which attracted a lot of attention. Demand for oil and natural gas is expected to increase amid the recovery of the global economy from the corona disaster, which will be a plus for MLP’s business performance.

Even in 2022, crude oil and natural gas prices rose sharply due to Russia’s invasion of Ukraine, and it looks like the strong performance can be expected to continue.

summary

Many infrastructure-related funds topped the 2021 rankings. Of the top five funds, two are index funds and three are active funds.

Index funds have lower operating costs such as trust fees, but some active funds have higher returns, so be sure to look at past performance as well as costs when choosing an investment trust.

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Kotaro Yamashita

After graduating from the Faculty of Economics at Hitotsubashi University, he became a private investor and financial writer after working as a market analyst and futures broker at a securities firm. Over 20 years of investment history. Currently, while working as a financial writer, he manages a wide range of products such as spot stocks, futures, currencies and CFDs. Twitter @yanta2011

Kotaro Yamashita

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