Predictions made at the end of last year for what 2026 would look like almost look farcical just six months later, as no one could have predicted the series of tumultuous events that have transpired over the first half of the year.
From the outbreak of the Iran war and subsequent closure of the strait of Hormuz to Elon Musk becoming a trillionaire following the launch of SpaceX, it has been a strange period for markets, which have enjoyed strong periods while also suffering some steep drops.
The newsflow has not just centred on the US, however. The UK will have a new prime minister after Kier Starmer announced his resignation, while in the emerging markets, Korea and Taiwan have overtaken India as index heavyweights as semiconductors have become the new in-vogue part of the market.
As we cross into the second half of 2026, we thought now was a good time to revisit the Trustnet team’s fund picks for the year. Despite the turmoil, four of the five selections are in positive territory, with head of editorial Gary Jackson’s Fidelity Asia up 50% since 22 December – easily the best performer so far.
The fund ranked ninth out of 114 in the IA Asia Pacific Excluding Japan sector, a top result in a region where almost everything soared. All the gains came in the second quarter, during which the fund returned 44.1% and finished second in its sector.
Manager Teera Chanpongsang runs a concentrated book with 37.4% in technology, including Taiwan Semiconductor Manufacturing Company and Samsung Electronics, both of which soared in value.
The call was contrarian when Jackson made it, arguing that he believed in the AI story but not the price of it in the US. He bought the same theme cheaper through Asia's chipmakers.
Performance of funds over the year to date
Source: FE Analytics
Senior reporter Emmy Hawker's BlackRock World Mining Trust came next, up 13.7% and ranking second in the seven-strong IT Commodity/Natural Resources sector.
Commodities have been on a mixed path in 2026. Having shone in recent years, gold gave up gains between January and June, down 6.1% in sterling terms.
However, the Bloomberg Commodity index is up 15.9% over six months, thanks in large part to the rise of oil following the start of the Iran war. Brent Crude is up 46.9% over six months, although it has started to come down in recent weeks as investors have started to price in the reopening of the strait of Hormuz.
Chosen by former Trustnet reporter Patrick Sanders, Liontrust European Dynamic was up 12.6%. It is 12th in the 141-strong IA Europe Excluding UK sector during this time.
At the time, he acknowledged he was chasing a momentum trade, as European equities had already run hard in 2025, but he bought in anyway on the view that valuations, stimulus and defence spending would keep the run going.
His choice of fund was shrewd, however. Liontrust European Dynamic is overweight financials – which have been boosted by an interest rate hike in the first half, while its top holding is a semiconductor stock. With 18.6% in technology, the fund has been actively invested in some of the most dominant themes of the first half.
Up next, deputy editor Matteo Anelli chose Nutshell Growth, which is hovering in the black with a small gain. While not last, it sits 517th out of 585 names in the IA Global sector so far in 2026 – although there is time for this to turn around.
Anelli’s 2025 pick took the wooden spoon last year. While his current position is an improvement, the fund could have a strong second half on the cards if it can continue to ride momentum. After falling heavily between January and March, the portfolio rose 14.7% in the following three months.
He chose Nutshell Growth precisely because it does not bet on a single outcome. Its high-turnover, adaptive approach was meant to earn its keep in a year expected to move sharply and could still come good in the second half.
In last place, editor Jonathan Jones’ WS Gresham House UK Smaller Companies is down 3.4%, the only one of the five picks losing money.
Describing it as a “least-worst” option and citing an interest in UK small-caps on valuation grounds, he may have overlooked the fact that cheap can stay cheap for a long time.
Like Anelli’s pick above, however, there is some momentum, with the fund up 13% over the second quarter. A new prime minister and political stability early in the second half of 2026 could also boost the prospects of the small-cap universe.
It may have to, or Jones could be looking up at his peers’ suggestions by the end of the year.