FTAdviser.com

Advertising

Richard Ramyar, UK head of research, said a “pronounced bounce” in the emerging markets had been the driving force behind the month’s exceptionally strong results.

Two sectors were “head and shoulders” above the rest: the IMA Asia Pacific ex Japan, which returned 11.02 per cent, and the IMA Global Emerging Markets sector, which returned 10.94 per cent.

Mr Ramyar said emerging markets, relative to developed ones, were “analogous to a leveraged investment” in the global outlook.

He added: “This amplification of the ups and downs of the global downturn meant these returns were almost double the next-best performance offered by competing sectors.”

The top-performing fund for March was the Baring Korea, which returned more than 25 per cent.

The next four best-performing funds over the period were the Junior Oils, CF Oceanic Australian Natural Resources, Neptune Russia & Greater Russia and Credit Suisse European Frontier funds, which returned 24.9 per cent, 22.3 per cent, 20.2 per cent and 17.9 per cent, respectively.

Mr Ramyar said commodities and eastern Europe were two themes evident among the top performers for the month, with four of the top five funds benefiting from “pre-G20 optimism” for those investments.

He said: “The twin hopes for the G20 were that it would resuscitate global economic activity and provide the renewed institutional safety net to support countries in future need.

“Strengthening economic activity would raise commodity prices, and a reinvigorated IMF would reassure eastern Europe investors the region’s macroeconomic problems would not be left to muddle through, or drag the EU down with them.”

He said the G20’s eventual consensus had strengthened previous measures and, more importantly, “nudged investor sentiment away from despair”.