China and climate funds were the biggest losers of January as tech stays strong
China funds were the worst performing category of any fund in January, while the strength of the tech sector continued to shine.
Throughout last month, the average China fund lost 9.2 per cent of its value, followed by UK index linked gilt funds, which lost 5.9 per cent, and Latin American funds, which lost 4.4 per cent.
Ben Yearsley, director of Fairview Investing, said: “China can’t seem to escape the doom loop – Beijing need a big bang to pull markets from historic lows.”
Redwheel China Equity was the worst performing fund of the month, while Baillie Gifford Climate Optimism followed close behind.
“Surely, they need to drop the optimistic tag with it performing so poorly?” asked Yearsley.
| Funds | Returns over January (per cent) |
| Redwheel China Equity | -17 |
| Baillie Gifford Climate Optimism | -16.8 |
| Active Solar | -16.7 |
| Amati Strategic Metals | -16.7 |
| Baillie Gifford China | -13.4 |
In contrast, the best performing fund sector of the month was tech, gaining 4.8 per cent over the month, followed by North America (three per cent), financials (2.4 per cent), Japan (2.4 per cent) and India (1.8 per cent).
Yearsley added: “The positive equity stories of 2023 all continue with tech, India, and Japan all starting 2024 with a bang. Two of those areas look pretty expensive – then again they almost always do.”
“Japan remains one of the most interesting stories with corporate change and more shareholder awareness helping drive markets.”
| Funds | Returns over January (per cent) |
| Oxeye Hedged Income | +9.5 |
| Axiom Concentrated Global Growth | +9.4 |
| AQR Sustainable Delphi Long Short Equity | +8.9 |
| Polar Capital Global Technology | +8.8 |
| Lord Abbett Innovation Growth | +8.8 |
Looking to investment trusts, the specific nature of the investment vehicle lead to big differences compared to open ended funds, with Seraphim Space gaining a whopping 49.4 per cent over the month.
Other strong performers included Foresight Sustainable Forestry, gaining 27.1 per cent, as the only investment trust of its type.
| Investment trusts | Returns over January (per cent) |
| Seraphim Space | +49.4 |
| Foresight Sustainable Forestry | +27.1 |
| Geiger Counter | +14.1 |
| Barings Emerging EMEA Opportunities | +12.1 |
| Tufton Oceanic Assets | +11.5 |