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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
EU referendem
Flanders: It’s a bad time to be underweight emerging markets

The world has changed since January 2016 as the strong dollar, falling commodity prices and serial poor performance by emerging...