Wealth managers' favourite funds of 2012

Smaller companies and recovery stocks were highly featured in wealth managers' best performing funds of the year, much to the chagrin of those continuing to back defensive names.

A mid-cap fund, a small-cap fund and two special situations mandates were chosen by wealth managers as their best performers, at a time when investors have been cautious about moving down the cap scale and embracing the higher volatility in these names. Only one bond fund featured in the list, despite the success seen in the asset class and one absolute return fund. Most interestingly, is the appearance of the Henderson European Special Situations fund. It has outperformed when most asset allocators have been underweight - or zero-weighted - to the region. Peter Lowman (pictured), ...