Technology funds plummeted ten per cent in March as UK investors dumped risk assets as fears started to grow about US president Donald Trump’s handling of the American economy.
Tech funds were the worst performing UK investment fund category in the month, followed closely by North American small company funds (nine per cent drop) and North American funds (eight per cent drop).
Meanwhile, gold and precious metal funds dominated the top 10 performing funds in March, taking up eight spots, with Baker Steel Gold & Precious Metals topping the tables with a rise of 15.3 per cent.
Gold prices hit a new high on the last day of March, thanks to the precious metal’s safe haven status.
The only non-gold funds in the top ten throughout the month were Jupiter’s India and India Select funds, both gaining just over 10 per cent.
By sector, Indian-focused funds actually achieved the best returns, growing 5.5 per cent, as there is no precious metal sector.
“India has suffered due to high valuations, concerns over long term growth prospects, and whether companies really have large addressable markets,” explained Ben Yearsley, director of Fairview Investing, but markets seem to have finally begun to sweeten on the subcontinent.
However, India and gold were the two bright spots for the investment industry throughout March, as only three other sectors (Latin America, euro corporate bond, and infrastructure) produced positive returns in the month, all growing under one per cent.
Impact Care REIT and Harmony Energy Income jumped 38 per cent and 35 per cent respectively during March, topping the tables after both receiving bids.
Looking to trusts, and all but one of the top five performers received bids last month, highlighting the growing consolidation within the sector.
They were following by Life Science REIT, which announced a strategic review that may lead to a bid, fifth placed trust Warehouse REIT, which received a couple of offers.
Gresham House Energy Storage was the only top five trust not to receive an offer last month, rising 33 per cent, but clearly gained due to the bid for competitor Harmony.
“Whilst these bids are great for short term investors, most are under the prevailing net asset value and call into question how these trusts have been valued in the past,” added Yearsley.
