The FTSE 100 index was the worst performing major stock market in the first three months of 2018, according to data from FE Analytics.
In local currency terms, the FTSE 100 lost 7.2 per cent in the three months to 30 March, while the broader FTSE All Share lost 6.8 per cent.
Those returns are substantially worse than any other market. The next worst performer was the Euro Stoxx Index, which lost 2.68 per cent. The S&P 500 lost 0.9 per cent. The MSCI World Index as a whole lost 2.2 per cent during the quarter.
Investors seeking a positive return needed to have emerging market exposure. The Hang Seng, the stock market index of shares listed on the Hong Kong stock exchange, was the best performing market during the quarter, returning a gain of 0.92 per cent.
The MSCI Emerging Markets index returned 0.72 per cent.
The best performing fund sector during the quarter was Japanese Smaller Companies, which returned 1.63 per cent.
At the same time the UK Equity Income fund sector, home to high profile managers such as Neil Woodford and Mark Barnett of Invesco Perpetual, lost over 6 per cent.
Ben Yearsley, a director at advice firm Shore Financial Planning said: “Despite risk being off, the top ten funds had Japan, Russia, Latam, China and the UK micro cap all represented – you wouldn’t really call those risk free funds.
"However the general tone was that more conservative funds broadly did better.
"It may be a cliché, but having a broad spread of investments is better for your wealth than concentrating on one narrow sector.
"Many UK investors concentrate on UK equity income funds as a core holding. They will be counting their losses today after a torrid three months. However with end of tax year Isa money being invested and new tax year money about to go in maybe equity income isn’t such a bad idea for contrarian investors.”
David.Thorpe@ft.com
