Defensive investment funds are still making money for investors despite the market turbulence
Defensive investment funds managed by the likes of Ruffer and Brevan Howard have been making money for savers despite the market turbulence.
Since coronavirus started sending the stock market into a downward spiral on February 24, the BH Global and BH Macro funds – both of which funnel investors’ money into Brevan Howard hedge funds – have been two of the top-performing London-listed investment trusts.
They have returned investors 11 per cent and 9 per cent of their money over that time.
Since coronavirus started sending the stock market into a downward spiral, the BH Global and BH Macro funds have been two of the top-performing London-listed investment trusts
Emerging markets specialist Ashmore Global Opportunities has also handed investors a decent return of 10 per cent, while debt fund Marble Point Loan Financing has kept its head above water with a 5 per cent return.
Of the more traditional investment trusts, Ruffer Investment Company has managed to generate a 4 per cent return for investors at a time when the FTSE All Share has tumbled by 30 per cent.
The trust aims to preserve investors’ money come what may, and even after the new Black Monday market crash last week, managers Hamish Baillie and Duncan MacInnes said they were not yet ready to gamble savers’ money on buying cheaper shares.
Annabel Brodie-Smith of the Association of Investment Companies said: ‘Out of the investment companies which have performed best during the recent market selloff, almost all of them invest in alternative assets.
‘These investments in areas such as wind farms, solar parks, property and private companies tend to be less closely linked to the wider stock market, and some can be positioned to take advantage of market volatility.’
There is still some value to be found in equities. Though the FTSE 100 has tumbled, anyone invested in Ocado has bagged a 13 per cent return on their money since February 24 as traders have placed their bets that the groceries firm will benefit from more people shopping online.
Among open-ended funds, which do not have shares listed on a stock exchange, the Baillie Gifford Active Long Gilt Investment fund has been the top performer with an 8 per cent return, as the value of ‘safe haven’ government bonds has soared amid coronavirus uncertainty.