Of the 30 funds in March's BOTB, 13 funds have retained their place in April's selection, which is the fewest for some time. The chart below shows the average performance of the BOTB during March (the red line) against a benchmark that is calculated using the respective sector averages for each fund in the BOTB and assuming the same asset mix (the green line). You can see that the BOTB underperformed its benchmark as its exposure to banking stocks and limited bond exposure hampered performance at the height of the banking crisis in March.
The above chart also highlights a change in market narrative. The banking crisis saw market participants increase bets that central banks will pause hiking interest rates further, and possibly begin to cut them later this year. A fall in interest rate expectations spurred a rally in technology stocks, long duration bonds as well as gold.
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