Best performing sectors for UK funds in 2017

Here are the 10 strongest-performing sectors on a total return basis according to the UK's Investment Association and data from FE Analytics:

10. Europe Including the UK

Despite the uncertainty of the immediate future with the Brexit ahead, the Europe including UK sector managed to make it into the top ten producing a total return of 5.85%

9. Europe Excluding the UK

Between the Brexit and stronger economic data, Europe Excluding the UK managed to take 9th place with a growth of 6.2%

8. Japanese Smaller Companies

With the help of a strengthening Yen, in particular against the Sterling, Japanese Smaller Companies returned 6.56%

7. UK Smaller Companies

Due to the weak Sterling there has been a significant increase into the import of tourist and foreign businesses that benefit small and mid-cap companies. With the increase in business for these smaller companies, the sector rose 7.29% and is set to further increase even if the Sterling rebounds.

6. European Small Companies

Whilst appearing attractive to investors, Europe has not had the stability or certainty that might would justify any high level of investment or risk until the Dutch election in March which has started to bring a bit of stability and confidence to the sector and brought about returns of 7.54%

5. Asia Pacific Including Japan

Asia Pacific Including Japan edged into the top five, returning 9.37% over the first quarter. But generally, funds with a Japanese focus lagged behind Asian Pacific funds.

4. Technology & Telecommunications

There is a lot of momentum driving technology and telecommunications and this past quarter has seen a little too much attention with SNAP's IPO and other big moves in the sector. With 10.68% growth, caution is advised when looking at this sector as many technology companies today continue to be valued in what they may potentially have to offer as opposed to any real value they may hold today.

3. Global Emerging Markets

Off the back of a very strong 2016, Global Emerging Markets have come out of the gates strong this year. Shaking off some initial nerves following the election of Donald Trump and the Dollar starting to stabilise more, with 11.03% of growth, Emerging Markets have and continue to become a place for investors to go to.

2. China/ Greater China

Although China's economy only expanded by 6.7% over 2016, the weakest full-year growth since 1990, the China/Greater China segment delivered the second highest returns of the first quarter at 11.54%. An 'Emerged Market', China is always a sector that makes investors nervous however there is still the scope for further growth.

1. Asia Pacific Excluding Japan

Generating returns of 11.59% and with three of the ten best performing funds coming from the region, Asia Pacific Excluding Japan was the best performing Investment Association sector of the first quarter. Whilst it is possible it initially was good value that drew investors closer, it does show promise for further growth with the strength that balance sheets in the area are now showing,

- Sources: UK's Investment Association, FE Analytics, International Advisor.