You are here: Home - Investing - Experienced Investor - News -

Emerging market investment trusts lead the way at the start of 2016

Written by: Adam Lewis
Investors in emerging markets enjoyed the healthiest investment returns in the first three months of 2016, with the Emerging Europe and Global Emerging Markets sectors topping the performance rankings in net asset value (NAV) terms, according to Winterflood Investment Trusts.

Despite a rocky start to the year in terms of stockmarket returns, in total 17 sectors delivered positive in the first quarter of 2016 with Emerging Europe leading the way with an NAV return of 13.7%. Global Emerging Markets ranked second with a return of 9.1%, while the North American Income sector placed third with a 6.4% sector average return.

The Emerging Europe sector also topped the charts in share price terms over the same time period (up 11.9%), while with a gain of 8.5% the Commodity sector ranked second, pushing Global Emerging Markets back into third place with a share price gain of 7.5%

However given the volatility in markets, Winterflood noted there was a huge variation in NAV performance in the first quarter, with 13 sub-sectors delivering negative returns over the time period. Falling 13.1%, the sector sitting at the bottom of the pile was Biotech & Healthcare, followed by Asset Backed Debt (-5.0%) and UK Small Cap (-3.9%). The Biotech & Healthcare sector also registered the worst share price performance in the first quarter, falling 14.6%.

While emerging markets and commodity trusts lead the sector performance rankings, on an individual basis, the investment trust which topped the share price return table over the time period was the Duet Real Estate Finance trust, which clocked a total return of 50%. With a market cap of only £9.4m, the trust is a feeder fund that is invested solely in the European Real Estate Debt fund, which essentially invests in the debt of European commercial property.

Meanwhile topping the NAV rankings over the same time period was the commodity related Golden Prospect Precious Metals trust, which returned 47.8%.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week