Japan and Korea dominated the performance tables in February, FE fundinfo data shows, as a snap election landslide and AI-driven semiconductor demand propelled Asian equities far ahead of the rest of the pack.
The surge in gold added another clear theme to the month. During February, gold price rose by around $500 an ounce, underpinning specialist precious metals funds and resource-heavy trusts. With oil prices and geopolitical risks escalating into the month-end, investors looked for traditional safe havens alongside selective regional equity exposure. Technology strategies bore the brunt of a rotation away from high-growth names.
The month’s defining event was Japan’s snap election, in which prime minister Sanae Takaichi won two-thirds of the lower house seats and her pro-business, pro-growth agenda triggered a market surge.
From a sector perspective, Japan topped the tables of both open-ended and closed-ended vehicles, with the average trust focusing on Japanese smaller companies slightly ahead (seven percentage points) of its broad-market IA Japan peers, as the table below shows. Asia Pacific excluding Japan and Asia Pacific including Japan both featured in the top five, with returns of around 8–9%.
By contrast, only two IA sectors lost money: Financials & Financial Innovation and UK Smaller Companies. Technology & Technology Innovation remained in the bottom five, albeit with a marginally positive return, reflecting the pressure on previously dominant AI-linked names.
Ben Yearsley, director at Fairview Investing, said: “Old school markets strike back! The UK and Japan have shown you don’t need to have trillion dollar AI companies to perform well; Topix is 23% ahead of Nasdaq in 2026 and FTSE 100 is 12% ahead. Both these markets also look good value, having come from very low starting points. That’s not to say you should ignore the US, but diversification is key especially in times of turmoil.”
| Sector | Return last month | Return ytd |
| IT Japanese Smaller Companies | 11.80% | 15.90% |
| IT Infrastructure Securities | 11.70% | 14.60% |
| IA Japan | 11.40% | 15.20% |
| IT Japan | 10.90% | 15.30% |
| IT Environmental | 10.80% | 14.60% |
| IT Asia Pacific Equity Income | 10.30% | 18.00% |
| IT Commodities & Natural Resources | 9.70% | 25.20% |
| IT Asia Pacific | 9.30% | 17.10% |
| IA Infrastructure | 8.80% | 11.40% |
| IA Commodity/Natural Resources | 8.80% | 19.70% |
| IT Property Securities | 8.70% | 14.00% |
| IA Asia Pacific Including Japan | 8.30% | 13.50% |
| IA Asia Pacific Excluding Japan | 8.10% | 14.40% |
| IT Asia Pacific Smaller Companies | 7.30% | 11.00% |
| IA Property Other | 7.30% | 9.20% |
| IA China/Greater China | 0.30% | 3.70% |
| IA Standard Money Market | 0.30% | 0.60% |
| IA Short Term Money Market | 0.30% | 0.60% |
| IT Property - Debt | 0.20% | 6.50% |
| IA Technology & Technology Innovation | 0.20% | 0.30% |
| IT Debt - Structured Finance | 0.10% | 0.00% |
| IT Property - Rest of World | 0.00% | 5.80% |
| IT VCT AIM Quoted | 0.00% | 1.80% |
| IT Debt - Loans & Bonds | -0.10% | 0.20% |
| IA UK Smaller Companies | -0.20% | 5.20% |
| IT Biotechnology & Healthcare | -0.90% | -2.00% |
| IA Financials and Financial Innovation | -1.40% | -2.80% |
| IT China/Greater China | -1.50% | 3.00% |
| IT Insurance & Reinsurance Strategies | -2.00% | -4.30% |
| IT Private Equity | -4.90% | -4.70% |
Source: FinXL
Turning to individual strategies, the top of the open-ended table is dominated by exchange-traded funds (ETFs) focusing on gold and the Korean market. Among the active strategies, Invesco Japanese Smaller Companies, up 19.95%, and Baring Korea, up 19.78%, were the standouts, while a further five of the top 10 were Japan-focused funds. Two Korea strategies and one broader Asian mandate complete the top cohort.
| Top funds in February | |||
| Fund | IA sector | Return last month | Return ytd |
| UBS Solactive US Listed Gold & Silver Miners UCITS ETF | IA Commodity/Natural Resources | 29.8% | 39.4% |
| Amundi NYSE Arca Gold Bugs UCITS ETF | IA Specialist | 27.9% | 39.5% |
| Franklin FTSE Korea UCITS ETF | IA Specialist | 24.3% | 55.4% |
| HSBC MSCI Korea Capped UCITS ETF | IA Specialist | 24.0% | 55.8% |
| Xtrackers MSCI Korea UCITS ETF | IA Specialist | 23.6% | 55.2% |
| iShares MSCI Korea UCITS ETF Inc | IA Specialist | 23.6% | 55.4% |
| Xtrackers MSCI Thailand UCITS ETF | IA Specialist | 22.9% | 28.4% |
| UBS Solactive Global Pure Gold Miners UCITS ETF | IA Commodity/Natural Resources | 22.8% | 31.8% |
| iShares Gold Producers UCITS ETF | IA Global | 22.1% | 33.8% |
| Invesco Japanese Smaller Companies (UK) | IA Japan | 20.0% | 25.4% |
| Barings Korea Trust | IA Specialist | 19.8% | 50.2% |
| PUTM ACS Japan Equity | IA Unclassified | 18.7% | 23.3% |
| JPM Korea Equity Fund | IA Specialist | 18.6% | 44.4% |
| RBC Funds (Lux) Japan Ishin | IA Japan | 16.3% | 23.6% |
| PineBridge Japan Small Cap Equity | IA Japan | 16.2% | 18.0% |
| GMO Usonian Japan Value Creation Investment | IA Japan | 16.0% | 20.0% |
| WS Morant Wright Nippon Yield | IA Japan | 15.6% | 22.6% |
| Janus Henderson Horizon Japanese Smaller Companies | IA Japan | 15.2% | 17.7% |
| PUTM ACS Sustainable Index Asia Pacific ex Japan Equity | IA Unclassified | 15.1% | 31.3% |
| Fidelity Japan | IA Japan | 14.9% | 20.7% |
| Janus Henderson Inst Asia Pacific ex-Japan Index Opportunities | IA Asia Pacific Excluding Japan | 14.9% | 27.9% |
| BlackRock ACS Asia Pacific ex Japan ESG Insights Equity | IA Unclassified | 14.8% | 31.1% |
| WisdomTree Strategic Metals and Rare Earths Miners UCITS ETF | IA Commodity/Natural Resources | 14.7% | 31.7% |
| Xtrackers MSCI Taiwan UCITS ETF | IA Specialist | 14.7% | 22.7% |
| HSBC MSCI Taiwan Capped UCITS ETF | IA Specialist | 14.6% | 22.8% |
Source: FinXL
As for the laggards, the worst-performing open-ended fund in the IA universe was ARC TIME Freehold Income Authorised at -19%, followed by Global Verdipapirfond, which fell by more than 12% over the month. The strategy’s emphasis on companies with high sustainability ratings, and its exclusion of fossil fuels, weapons and tobacco, worked against it in a period when energy and defence-related stocks were in favour.
Baillie Gifford American also featured among the weakest performers, losing 6.68% as US growth and technology names came under pressure. The Nasdaq declined 2.44% in February and the S&P 500 also ended the month in negative territory, reflecting a cooling in enthusiasm for the AI trade that has driven markets in recent years. Yearsley said: “It’s easy to tell when it hasn’t been a tech month with the return of Baillie Gifford American to the foot of the tables.”
Two UK smaller companies funds, Whitman and Gresham House, were also among the bottom-ranked names, mirroring the weakness in the IA UK Smaller Companies sector.
| Bottom funds in February | |||
| Fund | IA sector | Return last month | Return ytd |
| ARC TIME Freehold Income Authorised | IA Property Other | -18.7% | -18.3% |
| Global Verdipapirfond | IA Global | -11.4% | -15.8% |
| WisdomTree Blockchain UCITS ETF | IA Global | -9.9% | -6.6% |
| Invesco Cybersecurity UCITS ETF | IA Technology & Technology Innovation | -9.4% | -14.0% |
| First Trust Dow Jones International Internet UCITS ETF | IA Specialist | -9.4% | -12.9% |
| iShares Listed Private Equity UCITS ETF | IA Specialist | -9.1% | -11.8% |
| Wellington FinTech Fund | IA Financials and Financial Innovation | -8.9% | -18.0% |
| YFS Intelligent Wealth | IA Global | -8.6% | -2.9% |
| WisdomTree Cloud Computing UCITS ETF | IA Technology & Technology Innovation | -7.6% | -22.1% |
| Nasdaq Cybersecurity UCITS ETF | IA Specialist | -7.5% | -13.6% |
| Robeco FinTech | IA Financials and Financial Innovation | -7.2% | -14.2% |
| Amundi MSCI China ESG Selection | IA China/Greater China | -6.9% | -4.0% |
| Baillie Gifford American | IA North America | -6.7% | -11.7% |
| Invesco Global Consumer Trends | IA Global | -6.6% | -7.4% |
| TM Home Investor Feeder | IA Unclassified | -6.6% | -7.1% |
| WS Gresham House UK Smaller Companies | IA UK Smaller Companies | -6.2% | -2.8% |
| First Trust Cloud Computing UCITS ETF | IA Specialist | -6.1% | -15.7% |
| WisdomTree Cybersecurity UCITS ETF | IA Technology & Technology Innovation | -6.0% | -13.1% |
| TM Home Investor | IA Unclassified | -5.9% | -6.2% |
| UBS Solactive China Technology UCITS ETF | IA China/Greater China | -5.9% | -4.3% |
| WS Whitman UK Small Cap Growth | IA UK Smaller Companies | -5.6% | -1.6% |
| Pictet Digital | IA Technology & Technology Innovation | -5.4% | -9.9% |
| Amundi MSCI China ESG Selection Extra | IA China/Greater China | -5.2% | -2.5% |
| Liontrust UK Smaller Companies | IA UK Smaller Companies | -5.1% | -1.2% |
| EF 8AM Focussed | IA Flexible Investment | -5.1% | -3.1% |
Source: FinXL
The pattern was similar in the investment trust universe, although natural resources exposure was even more prominent at the top.
The Baker Steel Resources trust was the best-performing trust in February, gaining 22% as mining and commodity equities rallied alongside the recovery in gold and firmer oil prices. The Japanese Smaller Companies sector was the strongest AIC peer group, with the average trust rising 11.75%, while Infrastructure Securities also ranked among the leaders.
Schroder Japan was another notable performer, gaining just over 14% as investors increased exposure to the country following the election result.
Seraphim Space delivered the third-strongest performance among investment trusts in February, benefiting from renewed investor interest in space and technology-related opportunities. Not far down below and topping performance tables since December, Augmentum Fintech continued on its positive trend, rosing 16.92% during the month after a takeover approach at a price roughly 27% above the previous day’s close, although still below the last stated net asset value.
| Top trusts in February | |||
| Fund | IT sector | Return last month | Return ytd |
| Baker Steel Resources Trust | IT Commodities & Natural Resources | 22.2% | 52.9% |
| UIL Finance Ltd | IT Flexible Investment | 20.0% | 25.5% |
| Seraphim Space Investment Trust plc | IT Growth Capital | 17.5% | 25.8% |
| Augmentum Fintech PLC | IT Financials & Financial Innovation | 16.9% | 19.2% |
| Schroder Japan Trust plc | IT Japan | 14.5% | 20.0% |
| Baillie Gifford Shin Nippon PLC | IT Japanese Smaller Companies | 13.4% | 16.9% |
| JPMorgan Japanese IT plc | IT Japan | 13.2% | 21.6% |
| Schroder Oriental Income | IT Asia Pacific Equity Income | 13.1% | 20.6% |
| BlackRock World Mining Trust Plc | IT Commodities & Natural Resources | 12.6% | 28.1% |
| CQS Natural Resources Growth and Income Plc | IT Commodities & Natural Resources | 12.5% | 23.9% |
| Nippon Active Value Fund PLC | IT Japanese Smaller Companies | 11.8% | 19.3% |
| Ecofin Global Utilities and Infrastructure Trust Plc | IT Infrastructure Securities | 11.7% | 14.6% |
| JPMorgan Asia Growth & Income Plc | IT Asia Pacific Equity Income | 11.5% | 26.1% |
| Jupiter Rights & Issues Investment Trust PLC | IT UK Smaller Companies | 11.5% | 14.2% |
| Oryx International Growth Ltd | IT UK Smaller Companies | 11.2% | 12.8% |
| Impax Environmental Markets | IT Environmental | 10.8% | 14.6% |
| Japan Income & Growth Trust PLC | IT Japan | 10.8% | 14.2% |
| CT UK High Income Trust Plc | IT UK Equity Income | 10.6% | 12.9% |
| Schroder Asian Total Return Investment Company Plc | IT Asia Pacific | 10.6% | 15.7% |
| Aberdeen Asia Focus Plc | IT Asia Pacific Smaller Companies | 10.4% | 16.5% |
| AVI Japan Opportunity Trust Plc | IT Japanese Smaller Companies | 10.0% | 11.6% |
| Aberdeen Asian Income Limited | IT Asia Pacific Equity Income | 10.0% | 18.5% |
| JPMorgan Emerging Markets Dividend Income plc | IT Global Emerging Markets | 9.7% | 19.3% |
| Blackrock Energy & Resources Income Trust PLC | IT Commodities & Natural Resources | 9.7% | 23.3% |
| Golden Prospect Precious Metals Limited | IT Commodities & Natural Resources | 9.6% | 15.4% |
Source: FinXL
At the weaker end of the trust rankings, growth-oriented and technology-exposed vehicles struggled, echoing the open-ended fund universe. Notable losers included abrdn Diversified Income and Growth, Chrysalis and HgCapital.
| Bottom trusts in February | |||
| Fund | IT sector | Return last month | Return ytd |
| Fisher Barramundi | IT Not Yet Assigned | -69.9% | -76.1% |
| abrdn Diversified Income and Growth | IT Flexible Investment | -51.6% | -49.2% |
| Sure Ventures Plc | IT Technology & Technology Innovation | -33.3% | -35.7% |
| Macau Property Opportunities Limited | IT Property - Rest of World | -21.4% | -22.3% |
| Chrysalis Investment Limited | IT Growth Capital | -12.9% | -23.1% |
| HgCapital Trust | IT Private Equity | -11.9% | -21.5% |
| Chenavari Toro Income Limited | IT Debt - Structured Finance | -11.8% | -12.0% |
| CT Private Equity Trust | IT Private Equity | -10.5% | -7.8% |
| Aquila European Renewables | IT Renewable Energy Infrastructure | -8.8% | -32.6% |
| Molten Ventures | IT Growth Capital | -8.5% | -8.4% |
| Tetragon Financial Group Limited | IT Flexible Investment | -7.8% | -16.4% |
| JZ Capital Partners | IT Private Equity | -7.6% | -10.1% |
| Bellevue Healthcare Trust | IT Biotechnology & Healthcare | -7.5% | -7.0% |
| Oakley Capital Investment Ltd | IT Private Equity | -7.3% | -13.5% |
| Caledonia Investments PLC | IT Flexible Investment | -7.2% | -9.2% |
| Strategic Equity Capital plc | IT UK Smaller Companies | -7.1% | 1.9% |
| NB Private Equity Partners Limited | IT Private Equity | -6.9% | -11.6% |
| abrdn Property Income Trust Limited | IT Property - UK Commercial | -6.5% | -21.4% |
| Lindsell Train | IT Global | -6.3% | -8.3% |
| Pantheon International | IT Private Equity | -5.8% | -6.1% |
| LMS Capital | IT Private Equity | -5.6% | -3.0% |
| Pershing Square Holdings | IT North America | -5.2% | -10.8% |
| ICG Enterprise Trust | IT Private Equity | -4.7% | -1.7% |
| Partners Group Private Equity Limited | IT Private Equity | -4.5% | -7.4% |
| Symphony International Holdings | IT Private Equity | -4.4% | 3.8% |
Source: FinXL