Credit Suisse woes and the collapse of SVB triggered risk-off modes for the average investor, research by Wilshire has revealed.
The index provider and analyst revealed that multi-asset class returns over the first quarter in 2023 had been subjected to "sharp" rises in volatility.
Data suggested those funds skewed towards fixed income and commodities, such as gold, had experienced stronger performance than those with higher weightings to equities.
According to Wilshire's latest global markets performance report, markets went through three defined stages in the first quarter. It described these as: "Initial Goldilocks optimism, then bank contagion fears, followed by a late March rebound."
Indeed, bank contagion fears caused by SVB and Credit Suisse in March saw fixed income and gold outperform equities.
But despite global equities proving not so strong, multi-asset funds with higher weightings in US growth equities - particularly large-cap - delivered strong growth returns in the first quarter (see the chart, below).
The Wilshire report said: "March witnessed a sharp rise in market volatility driven by bank contagion fears triggered by the collapse of SVB and Credit Suisse. Gold and bonds benefitted from the risk-off trade.
"However, US growth stocks posted positive returns while US small cap and real estate investment trusts declined."
