By Mohamed Ali Bernat Henderson's Global Technology fund has been ranked the best performing unit tr...
By Mohamed Ali Bernat
Henderson's Global Technology fund has been ranked the best performing unit trust over three years by Standard & Poor's.
The fund was ranked first of 1621 UK unit trusts ahead of the Scottish Equitable and Aberdeen technology funds. Despite tech volatility seeing it drop in the ranking to 1503 in the month to 1 June, its three year performance has surpassed all competition in all categories. An initial investment of £1,000 three years ago would have returned £4,688.33 on 1 June 2000.
The frAAA rated fund, which has over £1bn in assets, is also ranked second over 10 years, outperformed by Aberdeen Technology, which returned £18,003 on a £1,000 initial investment over 10 years compared to Henderson's £13,975.12. Aberdeen's technology fund is ranked third over three years, with returns of £3,877.71 on a £1,000 investment while Scottish Equitable's frAA rated technology fund is ranked second over the same period, returning £4,001.36.
The technology funds' three year returns are followed by a clutch of US and smaller companies funds, which turned in results around the £3,000 mark over three years. Abbey National's US Emerging Companies ranked fourth, returning £3,225.53, but it dropped to a ranking of 1285 over the month to 1 June.
Technology funds lead the way in the investment trust sector as well. Finsbury and Henderson were the top performers in the UK investment trust category with their technology funds. A £1,000 investment in June 1997 in each of the funds would be worth £4,477.27 and £4,455.03 respectively.
Such has been the rise in value of technology stocks over the past few years, the recent and substantial volatility in this sector has done little to dampen longer-term performance, the research group said.
S&P's statistics show that investors in regular savings plans invested in technology funds have reaped even more rewards.
An investor paying into Henderson's Global Technology fund over five years at £50 per month (total investment £3,000) would have been looking at a fund worth £10,896.48 on 1 June. Overall, returns for regular premium investors in the UK unit trust and Oeic sector would be £4,167.68 over the same period.
According to S&P's three year statistical report, the worst performing trusts included Guinness Flight Asian Smaller Companies, Lincoln Far East and Scottish Widows Emerging Markets. The highest ranking of these would have decreased the initial investment to £680.90. The lowest return was £495.36 over three years, while the average return from all UK unit trusts to 1 June was £1,405.87.
The best performing FTSE100 tracker fund for three years to 1 June is the Guardian UK 100 Index Tracking fund with a return of £1,455.07, while the best performing ethical/ecological fund under review is the Equitable Ethical fund with an investment return of £2,040.27.
Average returns for UK pension funds stood at £1,352.01 over three years, marginally lower than the £1,405.87 average for UK unit trusts and Oeics.
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