Other notable strong performers included Latin America with a rise of 11.87%, North America with growth of 8.32% and Europe Excluding UK with growth of 7.85% in fund values.

During the same period in 2022, the top five sectors were Commodity/Natural Resources (6.81%), UK Direct Property (5.33%), Latin America (4.79%), Infrastructure (2.88%) and USD Government Bond (1.67%).

The data from FE Analytics also looked at the best performing funds for the IA Global Equity, IA Global Emerging Markets, UK All Companies and Sterling Strategic Bond sectors.

The IA Global Equity sector performed well for the half, with funds benefitting from the AI revolution topping the chart.

The L&G Artificial Intelligence fund topped the leader board with a return of 36.25%.

During the same period in 2022 the top performing fund was the Schroder Global Equity Income GB fund with a return of 33.49%.

The IA Global Emerging Markets sector saw lower returns year-on-year. For the first half of 2023 the top performing fund was the Artisan Emerging Markets fund which delivered a return of 14.03%. During the same period in 2022 the top performing fund was the Invesco Emerging Markets ex China (UK) fund with a return of 17.43%.

Topping the list in the UK All Companies sector was the Liontrust UK Focus which delivered a return of 12.86% for the first half of this year.

This is a considerable improvement in performance for the sector which in the first half of 2022 saw a top performance of only 4.15% from the Invesco FTSE RAFI UK fund.

For the Sterling Strategic Bond sector, the best performing fund was the Capital Group Global High Income Opportunities fund which delivered returns of 4.34%. It delivered its robust performance by capitalising on opportunities within the US Dollar High Yield and Emerging Market debt markets.

Its performance compares to a 0.42% return for the highest performing fund in the same period in 2022 which was the FP Carmignac Unconstrained Global Bond fund.

Charles Younes, head of manager selection, FE Investments, said: “Throughout the first half of 2023, the top-performing funds we have seen have consistently demonstrated their expertise in their respective investment categories. These funds have delivered impressive returns, showcasing their strong performance, robust strategies, and ability to generate substantial growth for our investors." 

“When looking at the best performing sectors, it shows that equity markets have been more robust than expected, while the sell-off in bond markets has continued despite expectations for the economy to collapse.”

The list was compiled using data drawn from FE Analytics for the first half of 2023.