The tech sector topped returns in what was a ‘risk-takers’ month in November, with the sector up 9.7%, according to data from FE Fundinfo.
Meanwhile, Latin America (8.5%), European Smaller Companies (8%) and Property – other (7.6%) all enjoyed a strong month for returns.
The IA Europe ex UK sector rounded out the top five, returning 6.7% over the course of November.
| IA fund Sectors – 1 month (top five) | Return % |
| Technology & Technology Innovation | +9.65 |
| Latin America | +8.54 |
| European Smaller Companies | +7.96 |
| Property Other | +7.6 |
| Europe ex UK | +6.68 |
From an individual funds perspective, Nikko Ark Disruptive Innovation was the single highest performer over the month, returning 26.6%.
Baillie Gifford American also enjoyed a strong month, returning 17.77%, while Janus Henderson Horizon Pan European Property Securities was up 15.8%.
Ben Yearsley, Fairview Investing director, said: “As you’d expect when risk is pre-eminent, Baillie Gifford and Morgan Stanley feature in the top echelons… With traders pencilling in a first US rate cut in May 2024 and probably only two cuts in total next year, it seems strange high growth stocks have rebounded so much. The cost of capital doesn’t fall that much.”
| Funds – 1 month (top ten) | Return % |
| Nikko Ark Disruptive Innovation | +26.6 |
| Baillie Gifford American | +17.77 |
| Janus Henderson Horizon Pan European Property Securities | +15.8 |
| Morgan Stanley US Advantage | +15.71 |
| Liontrust Global Technology | +15.57 |
| Morgan Stanley Global Insight | +15.46 |
| Blackrock Aquila Life Israel Eq | +15.33 |
| Baron Global Advantage | +15.19 |
| Morgan Stanley INVF US Advantage | +14.33 |
| CT European Real Estate Securities | +14.3 |
At the other end of the spectrum, IA China/Greater China and USD Government Bond were the only sectors to produce negative returns, falling 2.6% and 0.3% respectively.
Yearsley added: “After predicting a great year for bonds, many fund managers have been left feeling a bit daft in 2023, well no more, Bond is back. Not Daniel Craig, but the humble government bond.
“US Treasuries have just had their best month in almost four decades, but arguably still offer decent value and with inflation falling sharply is this it for rate hikes? However, the shine was taken off for UK investors as Sterling’s strength knocked returns substantially.”
In terms of investment trusts, property securities was the top-performing sector as it returned 14.4% over the month. Looking at individual names, Baillie Gifford Schiehallion – a private equity-focused trust – returned 45.9% to top the charts.
Chrysalis, which announced its departure from Jupiter in the month, was also among the top five for its NAV total return of 24.5%.
See also: ‘Cutting away the fat’: Investment trust selectors ‘applaud’ decision of Chrysalis’s board
