Fund returns turn positive as G20 boosts sentiment

Strong returns were observed for investment funds last month, with a particularly impressive performance from the emerging markets-linked sectors.

According to a new report from research firm Lipper, 70 per cent of sectors covered by the Investment Management Association (IMA) achieved positive returns.

This marks a turnaround from previous months, where volatile markets and the continuing economic downturn led to some funds’ returns being negatively affected.

In particular, the near-50 per cent decline of global stock markets caused by the credit crunch has harmed the funds.

However, with some economic surveys suggesting recovery, the markets have rallied.

The IMA Asia Pacific ex Japan and the IMA Global Emerging Markets sector were found to have returned 11.02 per cent and 10.94 per cent respectively.

Dr Richard Ramyar at Lipper also said that last week’s $1 trillion G20 summit agreement had ’nudged investor sentiment away from despair’.

He added: ’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.’ADNFCR-2318-ID-19111753-ADNFCR