Technology staged a comeback in April as markets rallied on the tentative ceasefire to the Iran conflict and returned to AI-driven exuberance, FE fundinfo data shows.
The reversal from March's energy-dominated tables was stark, with the IA Technology & Technology Innovation sector topping the open-ended universe with a gain of 15.8%, while its investment trust equivalent rose 17.4%.
Asia Pacific ex Japan was the other defining theme of the month, with several regional sectors posting double-digit returns as Taiwanese and Korean chipmakers, including TSMC and SK Hynix, were among the primary beneficiaries of renewed enthusiasm for AI infrastructure spending.
Ben Yearsley, director at Fairview Investing, said: “Hands up who had markets rising strongly in April? The Iran conflict was surely planned by Donald Trump as being short and sharp. Two months in and the attritional war is still ongoing with markets now seemingly shrugging it off and returning to pre-war AI exuberance.”
The pound's 2.6% gain against the dollar in April complicated the picture for sterling-based investors in US assets. Dollar-denominated bond sectors were among the weakest performers as a result, with the IA USD Government Bond, IA USD Corporate Bond and IA USD Mixed Bond sectors all finishing in the bottom five.
Healthcare was the other notable laggard, falling 2.7% on average across the month – a sector dominated by US-listed names and therefore doubly exposed to the currency headwind.
| Sector | Return last month | Return ytd |
| IT Technology & Technology Innovation | 17.4% | 14.8% |
| IA Technology & Technology Innovation | 15.8% | 10.0% |
| IT Asia Pacific | 13.5% | 16.1% |
| IT Growth Capital | 12.6% | 12.7% |
| IA Asia Pacific Excluding Japan | 12.1% | 14.4% |
| IT Global Emerging Markets | 12.1% | 13.3% |
| IA Global Emerging Markets | 12.1% | 14.8% |
| IT Infrastructure | 10.9% | 9.7% |
| IT European Smaller Companies | 10.7% | 3.2% |
| IT Asia Pacific Smaller Companies | 10.2% | 7.2% |
Source: FinXL
A similar theme ran through the list of individual funds, which was also dominated by technology specialists.
“Technology has come riding to the rescue again despite a headwind from a weak US dollar. The AI trade is back in full swing despite a few wobbles over capex – there's always someone on the other side of the trade benefitting from the tech bros' largesse,” said Yearsley.
Four of the top 10 open-ended funds were technology-focused, with Liontrust Global Technology topping the universe with a gain of 35.2%. The remainder of the table was split between Korean ETFs and broader Asia Pacific strategies.
At 34.6%, Barings Korea came in a close second place, as Korea-focused strategies were buoyed by AI-driven semiconductor demand and ongoing corporate reform momentum following president Lee Jae Myung's shareholder value agenda.
Among active managers, Polar Capital Global Technology (30%) and T. Rowe Price Global Technology Equity (26.3%) stood out.
UK smaller companies was a surprise entrant among the month's stronger performers, with the IA sector gaining 7.7% – a recovery from recent weakness that Yearsley attributed in part to the sector's domestic focus making it less exposed to Middle East-driven commodity volatility.
| Fund | IA sector | Return last month | Return ytd |
| Liontrust Global Technology | IA Technology & Technology Innovation | 35.2% | 25.3% |
| Barings Korea Trust | IA Specialist | 34.6% | 59.3% |
| Xtrackers MSCI Korea UCITS ETF | IA Specialist | 33.6% | 58.0% |
| iShares MSCI Korea UCITS ETF Inc | IA Specialist | 33.5% | 58.1% |
| HSBC MSCI Korea Capped UCITS ETF | IA Specialist | 33.2% | 58.0% |
| Franklin FTSE Korea UCITS ETF | IA Specialist | 33.0% | 58.1% |
| Polar Capital Global Technology | IA Technology & Technology Innovation | 30.0% | 41.7% |
| Polar Capital Smart Energy | IA Specialist | 29.1% | 48.2% |
| Amundi MSCI Semiconductors | IA Technology & Technology Innovation | 27.6% | 33.8% |
| T. Rowe Price Global Technology Equity | IA Technology & Technology Innovation | 26.3% | 19.4% |
Source: FinXL
The worst performer in the IA universe was HSBC MSCI Indonesia UCITS ETF, down 10% and 27.3% lower year-to-date, as the country's large oil import dependency continued to weigh on sentiment.
Gold and precious metals funds, which had been among the strongest performers earlier in 2026, gave back more ground in April: Amundi NYSE Arca Gold Bugs UCITS ETF fell 8.4%; UBS Solactive US Listed Gold & Silver Miners 7%; and iShares Gold Producers 5.8%, suggesting investors took profits in a trade that has had a good run.
Defence ETFs, which surged earlier in the year on European re-armament themes, also featured among the weakest – as did energy funds. GS North America Energy & Energy Infrastructure fell 5.4%, BlackRock BGF World Energy 4.7%. Yearsley noted that after six months of strong returns, profit-taking was a plausible explanation.
| Fund | IA sector | Return last month | Return ytd |
| HSBC MSCI Indonesia UCITS ETF | IA Specialist | -10.0% | -27.3% |
| Amundi NYSE Arca Gold Bugs UCITS ETF | IA Specialist | -8.4% | 3.8% |
| YFS Argonaut Absolute Return | IA Targeted Absolute Return -8.3% | -2.7% | |
| UBS Solactive US Listed Gold & Silver Miners UCITS ETF | IA Commodity/Natural Resources -7.0% | -3.1% | |
| Xtrackers MSCI USA Energy UCITS ETF | IA Commodity/Natural Resources -6.4% | 31.8% | |
| State Street SPDR S&P U.S. Energy Select Sector UCITS ETF | IA North America | -6.3% | 31.9% |
| iShares S&P 500 Energy Sector UCITS ETF | IA Commodity/Natural Resources -6.3% | 31.9% | |
| UBS Solactive Global Pure Gold Miners UCITS ETF | IA Commodity/Natural Resources -6.0% | -1.1% | |
| iShares Gold Producers UCITS ETF | IA Global | -5.8% | 2.2% |
| iShares Global Timber & Forestry UCITS ETF | IA Commodity/Natural Resources -5.6% | -6.5% | |
| WisdomTree Europe Defence UCITS ETF | IA Europe Including UK | -5.5% | 1.0% |
| Amundi Stoxx Europe Defense | IA Specialist | -5.4% | -3.2% |
Source: FinXL
In the investment trust universe, Seraphim Space was the standout performer, rising 34.3% and announcing a new capital raise during the month. Polar Capital Technology Trust gained 25.6%, while Allianz Technology Trust and Manchester & London IT also featured prominently.
Among the weakest trusts, Aquila European Renewables fell 25.6%, and Sure Ventures dropped 6.7%. 3i Group fell 5.1% in April and is down 21.5% year-to-date as investor concern has persisted around its concentration in Netherlands discount retailer Action.
| Fund | IT sector | Return last month | Return ytd |
| abrdn Property Income Trust Limited | IT Property - UK Commercial | 37.7% | 18.0% |
| Seraphim Space Investment Trust plc | IT Growth Capital | 34.3% | 67.9% |
| Polar Capital Technology Trust PLC | IT Technology & Technology Innovation | 25.6% | 30.0% |
| Manchester & London IT plc | IT Technology & Technology Innovation | 23.2% | 16.9% |
| Molten Ventures plc | IT Growth Capital | 22.3% | 11.0% |
| Allianz Technology Trust PLC | IT Technology & Technology Innovation | 20.9% | 16.3% |
| Golden Prospect Precious Metals Limited | IT Commodities & Natural Resources | 20.4% | 12.2% |
| Pacific Horizon Investment Trust PLC | IT Asia Pacific | 18.9% | 30.5% |
| Fidelity Emerging Markets Limited PTG | IT Global Emerging Markets | 18.8% | 24.8% |
| Scottish Mortgage Investment Trust PLC | IT Global | 18.4% | 18.9% |
| DP Aircraft I Limited | IT Leasing | -6.0% | 12.8% |
| Macau Property Opportunities Limited | IT Property - Rest of World | -6.3% | -9.2% |
| Sure Ventures Plc | IT Technology & Technology Innovation | -6.7% | -50.0% |
| Unicorn AIM VCT plc | IT VCT AIM Quoted | -8.3% | -2.4% |
| Symphony International Holdings LD | IT Private Equity | -8.6% | 4.9% |
| Tetragon Financial Group Limited | IT Flexible Investment | -9.2% | -24.8% |
| LMS Capital plc | IT Private Equity | -10.8% | 0.0% |
| Digital 9 Infrastructure | IT Infrastructure | -13.4% | -25.4% |
| abrdn European Logistics Income PLC | IT Property - Europe | -15.8% | -13.2% |
| Aquila European Renewables PLC | IT Renewable Energy Infrastructure | -25.6% | -52.1% |
Yearsley said: "It's amazing how strong markets have been if you consider that oil has doubled in price over the past two months and that global trade through the Middle East has ground to a halt. At least central bankers haven't followed the playbook from the Ukraine conflict and hiked rates – yet."