Money market and bond funds listed in US dollars have fared best in the last three months thanks to the strengthening of the greenback and the weakness of the equity markets, according to Morningstar, the fund monitor.
Certain biotech funds listed in US dollars have also shown resilience with B-shares in UBS’s EF-Biotech fund returning 20.3 per cent in the last three months and discounted A-shares in Franklin’s Biotech fund up 17.2 per cent.
Baring’s Directional US dollar-listed global bond fund was the top performer of the year among UK-registered investment funds, returning 20.6 per cent in the last three months and 28 per cent in the last 12 months.
Other strong performers over the past year include CMI’s GNF Japanese bond fund which is up 25.3 per cent and Gartmore’s SICAV global bond fund which is up 25 per cent.
The Georgian crisis and faltering oil price, meanwhile, weighed on the returns of Russian funds in the last three months – with the Russian funds of Baring’s and JP Morgan reporting losses of more than 40 per cent. Natural resource funds such as JP Morgan’s Global Natural Resource fund and HSBC’s Brazilian Equity fund also fared poorly because of the falling price of commodities.
In the past year, investors who shunned Asian funds with a focus on Japan or China escaped some of the markets’ wrath. Melchior’s Japan fund and Jupiter’s China fund reported losses of more than 47 per cent while Melchior’s Asian Opportunities fund shed 59.7 per cent and Atlantis’s China Fortune fund, 57 per cent. Tilney’s British Real Estate fund was also one of the worst of the lot in the past year, losing 49.5 per cent.
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