Signals of recovery are present in the retail investment fund sector, a new survey has suggested.
Retail investment funds experienced something of a turnaround last month, with emerging markets generating particularly strong returns.
Researchers at Lipper showed that seven in ten sectors covered by the Investment Management Association (IMA) offered positive returns for customers. This is an improvement over previous months, where funds were hit hard from the volatile markets caused by the financial crisis.
The top two performers found on the survey were IMA Asia Pacific ex Japan and the IMA Global Emerging Markets sector, returning 11.02 per cent and 10.94 per cent respectively. "Relative to developed markets, emerging markets are analogous to a leveraged investment in the global outlook," Dr Richard Ramyar, head of research at Lipper, explained.
"This amplification of the ups and downs of the global downturn meant that these returns were almost double the next best performance offered by competing sectors."
Last week's G20 summit, at which a $1 trillion package of measures aimed at strengthening the global economy was agreed by leaders, could also boost fund returns according to Lipper. Dr Ramyar added: "The G20’s eventual consensus rolled together and strengthened previous measures and nudges investor sentiment away from despair.
"Real success will depend on events and building on these foundations over the long term - sustained investment returns will be one of the harbingers of better times."
