What Were The Best- And Worst-performing Funds And Sectors In February?

Adrian Lowcock, investment director at Architas, looks at the best and worst-performing funds and sectors in February, a month marked by a sharp sell-off and a return of volatility. 

This caused defensive assets, which had sold off in January as the bull market dominated, to return to favour as investors become spooked by the sudden change in sentiment.

"Technology stocks were once again a rare bright spot in equity markets and in the US stood out as the only sector to deliver a positive return for the month.  

"Technology continues to attract investors in a world where growth is still hard to come by. While valuations may be high, the disruptive nature of technology and its ability to generate growth irrespective of the economic climate have made it a defensive sector."

"UK equity and European sectors took the brunt of the sell-off in February as investors sought the safety of the US dollar and Japanese yen. Meanwhile, the euro also rose against the pound as focus on Brexit negotiations returned at the end of month.

"This all meant that UK investors saw the full impact of the market sell-off hit their UK and sterling quoted investments the hardest - as they offered no currency protection.

"Chinese markets also suffered as fears of a global slowdown would have a big impact on exports for the country."

"Gold funds suffered more from the rebound in the dollar, while wider commodities also suffered a setback as fears of a slowdown rose, which would affect demand for commodities in the medium term.

"BlackRock Gold & General primarily invests in mid-sized gold mining companies, so also has exposure to the equity market and not just the gold price."