As investors face the new year, Money Management has used FE Analytics to compare the returns of fund sectors in January for the last five years, and found that global equities are the ones to watch.
Whether it be emerging markets, global equities or Asian equities, international shares have started off each year for the last five years with a top 10 spot.
This year saw the emerging markets sector return on average 3.79 per cent for the month of January, putting it in top spot, followed closely by Asia Pacific ex Japan equities, which sat second top with 3.17 per cent.
European equities followed, with 2.48 per cent returns, global equities with 2.06 per cent and North American equities with 1.97 per cent.
In 2017, Asia Pacific ex Japan equities sat second-top spot with 1.08 per cent returns, and emerging markets remained in the top 10 with 0.50 per cent returns.
Twenty-sixteen saw Australians turn cautious with their investments, and all top 10 sectors were fixed interest or property.
Asia Pacific equities were second-top spot in January 2015 with 6.15 per cent returns for the month, with emerging markets trailing just behind with 5.64 per cent and European equities with 4.50 per cent. Global equities sat in tenth position with 2.70 per cent returns for the month.
Going further back, 2014 saw a cautious environment again, but global equities featured in eight position with 0.70 per cent returns, and 2013 saw European equities, North American equities, global equities and Asia Pacific equities place in the top 10 again.
The chart below tracks the performance of the global equity sectors from January 2015 to date.
