“It’s always darkest before dawn,” wrote Thomas Fuller, while Friedrich Nietzsche reminded us that “that which does not kill us makes us stronger.” Perhaps the most fitting market mantra, however, comes from Winston Churchill: Keep Buggering On.
In many ways, that perfectly captures the behaviour of financial markets over the past year. Encouragingly, market leadership broadened. Returns were not solely driven by US mega-cap technology stocks, with regions such as the UK, Europe, Japan and emerging markets all contributing meaningfully. Even bonds, often overlooked in recent years, produced solid positive returns.
Read our full market view in the latest edition of Viewpoint here
Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and tax rules can change. Chelsea does not offer advice and so if you are unsure of anything please contact an expert adviser.
Best-performing sectors so far in 2026
So far in 2026, we’ve seen a shift in market leadership. Commodity and natural resource funds have led the way, returning 10.3%*, benefiting from strong demand and higher prices, while Latin America and emerging markets have also delivered robust gains, 8.4% and 4.5% respectively*. Infrastructure has been another standout, returning 6%*, reflecting both defensive qualities and structural growth drivers.
While volatility is likely to persist, the key lesson remains unchanged: markets have repeatedly demonstrated their ability to move higher, despite uncertainty. For investors, staying invested – rather than attempting to time short-term swings – continues to be critical.
Against this backdrop, a range of funds on the Chelsea Selection across different regions and sectors have made a strong start to 2026.
Best-performing funds on the Chelsea Selection so far in 2026*
When it comes to individual funds, the best-performing fund on the Selection has been Schroder Asian Income, returning 9.8%* for investors. The fund is 12% underweight China relative to its benchmark and has a 4% overweight to financials**, reflecting its income-focused approach.
It’s followed in second and third place by FTF ClearBridge Global Infrastructure Income and GQG Partners US Equity, with returns of 8.5% and 8.2% respectively. The ClearBridge fund combines regulated utilities with demand-based infrastructure, such as railways and roads. Around 39% of the portfolio is invested in electric utilities and 16% in gas, with the US representing the largest regional exposure at close to a third of the fund**.
Meanwhile, GQG Partners US Equity is particularly distinctive within the North America sector. It has no exposure to technology, which makes up around a third of its benchmark***. Instead, the fund’s largest overweight position is in utilities, accounting for 21% of the portfolio, compared with just 2% in the index***.
