Over the long term, stocks are the only financial investment capable of beating inflation. However, stock markets can of course go through temporary decline phases, as in 2022. The main global stock market indices all lost ground last year: -9.5% for the CAC40, -12% for the Euro Stoxx, -19% for the S&P500 and even -33% for the Nasdaq. However, several mutual funds did well, with less significant declines in Europe and even positive results. At the same time, their performance in the medium and long term remains very attractive. What are these remedies? We take stock in this article!
2022, a dark year for the stock market
Fall in stock markets, bond crash, high inflation, rise in commodities and interest rates, war in Ukraine, lockdowns in China… These negative leverages posed serious threats in 2022 for the main mutual funds.
The war in Ukraine led to a sharp increase in volatility and risk aversion in the stock markets. Faced with such risks, which are still present, the utmost caution must always be in place.
The deterioration of the geopolitical context has had serious economic consequences, in particular the acceleration of inflation, which has already been stimulated by the post-Covid recovery. Indeed, Ukraine is one of the largest exporters of grains and edible oils, and Russia is one of the largest producers of black gold and commodities such as palladium and nickel.
After the Russian invasion, Westerners decided to reduce their dependence on Russian oil and gas, which led to an increase in hydrocarbon prices and more generally in energy costs. Mechanically, energy stocks rallied strongly, and the mutual funds targeting them generated significant returns last year.
In purely stock market terms, however, the worst has been avoided. As for the main world markets, the CAC40 gained during the summer thanks to good corporate performance that, overall, exceeded analysts’ expectations. This trend continued in the second half. In France, the CAC40 still lost 9.5% last year, i.e. its worst performance since 2018 (-11%).
From the second half of the year, investors also expected a “pivot” from the central banks, i.e. an easing of their monetary policy dedicated to combating inflation. However, those hopes were dashed in mid-December after the Fed and ECB were determined to continue their interest rate hikes in the face of the sharp global price increase that they had not anticipated at the start of the year.
In this busy environment, mutual funds that have had positive results are particularly rare. Others that were in decline weathered the overall decline better than the major stock indexes. In the rest of this article, we take stock of four European funds that have proven to be robust in 2022.
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2022: the best French funds
1. First on the list, the foundation HMG Discoveries C (FR0010601971) is dedicated to small and medium-sized French stocks, mainly from the consumer sector, industrials, communications services and basic materials. By 2022, it generated a performance of 2.85%*.
2. Among the foundations that have stood up the best, we find the foundation Moneta Multi Caps C (FR0010298596), one of our favorite funds to target large-cap French stocks, which is notably part of our recommended allocation on the Meilleurtaux Allocation Vie contract. The fund was established in March 2006 and targets French equities, primarily in the industrial, financial, information technology and telecommunications sectors.
The top 5 lines of the portfolio represent more than 20% of its total assets:
- 1. BNP Paribas: 5.6% of the total fund allocation
- 2. Sanofi: 5.6%
- 3. Total energy: 5.1%
- 4. Bollore: 4%
- 5. Peugeot Invest: 2.6%
The foundation’s results*:
Over ten years, the fund’s cumulative performance is 154.09%*, i.e. an outperformance of more than 50%* on its investment category (French shares). The managers’ management choices have therefore proven to be particularly attractive in the long term.
The fund’s cumulative performance is 24.95%* over five years and 18.37%* over three years, again above the French equity average. In 2022 it stands at -8.11%*, which is better than the investment category (-10.91%*).
MorningStar rates support risk as above average across all investment horizons, relative to its investment category. Its volatility over the last twelve months stands at 18.59% and 23.74% over three years. The current trustee, Romain Burnand, has been at the helm of the fund since its creation in March 2006.
2022: the best European funds
In this ranking, we have included European generalist and sector funds to reflect the resilience of the energy and financial sectors in 2022. They have respectively been supported by the war in Ukraine and the rise in rates.
1. Exclusive sector stocks were the best European equity fund in the 2022 fund Alken Fund – European Opportunities Class (LU0235308482). It targets European stocks in the industrial, basic materials, consumer protection and energy sectors. It first enters our list with a performance of 7.18%* in 2022.
2. But the best European fund wasETF Lyxor STOXX Europe 600 Oil & Gas (LU1834988278). It was created in October 2006 and tracks the performance of the STOXX Europe 600 Oil & Gas benchmark index. As the name suggests, this index consists of 600 European stocks (including the UK) that are representative of the oil and gas sector in Europe. Therefore, this ETF is eligible for PEA.
The top five stocks in the replicated index represent 75% of the ETF’s total allocation:
- 1. Shell, the largest Anglo-Dutch oil company: 30.35%
- 2. TotalEnergies, the leading French oil company: 15.68%
- 3. BP, a major British oil company: 15.23%
- 4. Equinor, major Norwegian oil and wind company: 7.44%
- 5. Eni, Italian gas and electricity company: 6.30%
The foundation’s results*:
The ETF’s performance stands at 63.06%* over ten years, in line with the investment category (equities in the energy and commodities sector). Over five years, the tracker had a performance of 34.26%* and 22.24%* over three years.
As with the previous support these are especially his performances in the last few months that attract attention. In 2022, the ETF generated a performance of 28.77%*, outperforming the investment category. And that despite the drop in oil prices in recent weeks.
MorningStar rates support risk as below average across all investment horizons, relative to its investment category. Its volatility over the last twelve months stands at 23.11% and 34.02% over three years.
Invest in the best funds in life insurance
The four funds presented in this article are eligible for our Meilleurtaux Liberté Vie life insurance.
With Liberty Life’s best prices, you can invest without arbitrage fees in specific themes and sectors of activity : luxury, health, technology, security, raw materials, industries, precious metals… and in all geographical areas, from the most classic to the most exotic : France, Germany, New Europe, Japan, Eurozone, USA, China, India, Switzerland, Singapore, Brazil etc…
More than 680 units of account* are available in the contract to increase your investments in connection with free management, but also 20 SCPIs, 111 Live Securities and Private Equity Funds to diversify your savings in real estate and unlisted. 132 SRI rated funds are eligible for Best Liberty Life Rates.
With Liberty Life’s best pricesyou will naturally benefit from the personal support from our Wealth Management Advisors.
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* Past results are not indicative of future results and are not constant over time. Investing in shares, bonds or UCITS presents a significant risk of capital loss and must be considered from a long-term perspective, representing a small part of a total inheritance. Unlike funds in euros, the value of these supports, which reflect the value of the underlying assets, is not guaranteed, but is subject to upward or downward fluctuations, especially depending on the development of the financial markets.
** Meilleurtaux Liberté Vie is an individual multi-support type life insurance contract distributed by Meilleurtaux Placement and insured by Spirica (100% subsidiary of Crédit Agricole Assurances), SA with a share capital of 231,044,641.08 euros, a company subject to the Insurance Law, RCS Paris No. 487 739 963, 16-18, boulevard de Vaugirard 75015 PARIS. The guarantees in this contract can be expressed in units of account, in shares of diversification provisions and in euros. For the part that is invested in account units and in shares of diversification provisions, the invested amounts are not guaranteed and are subject to upward or downward fluctuations depending in particular on developments in the financial markets.
The main characteristics of the Meilleurtaux Liberté Vie contract and its various investment options are described in the key information document and the specific information documents available at placement.meilleurtaux.com or on the insurance company’s website https://www.spirica.fr.