Barron’s Best Fund Families of 2023

Market Performance in 2023:

• Despite various worries, including recession fears and geopolitical tensions, it was a strong year for stocks and bonds.
• U.S. equity funds rose by 21.1%, fixed-income funds had their best year since 2019, and world equity funds gained 15.4%.
• Passive S&P 500 index funds performed well, driven by tech stocks like Alphabet, Amazon, and Tesla.
• Active managers like Putnam Investments and Fidelity Investments proved their value through solid performance.
• The focus for 2024 will be on the Federal Reserve's decisions and active management strategies.

Top Performing Fund Managers:

• Putnam Investments' Jennison Growth fund and PGIM's Total Return Bond fund were among the top performers.
• Fidelity Investments excelled in growth investing, with funds like Contrafund and Blue Chip Growth performing strongly.
• Virtus Investment Partners showcased strength in its model, focusing on quality and high-conviction managers.

Investment Strategies:

• Managers focused on stock-picking, fundamental research, and strategic moves in sectors like securitized debt and muni bonds.
• Emphasis on quality companies, sector rotation, and taking advantage of market volatility were key themes.
• Funds like Touchstone Mid Cap and Balanced outperformed peers due to disciplined investing approaches.

Industry Trends:

• Asset managers anticipate significant movements