The value of charity investments rose by an estimated 6.4 per cent in the second quarter of 2009, according to figures released last week by market data provider WM Performance Services.
It is the first quarterly rise in the overall value of charity investments since the final quarter of 2007.
The sharpest increase was in the value of UK equities, the largest element of most charity portfolios, which rose in value by 10.9 per cent. Overseas equities increased by 5 per cent. However, cash rose by only 0.1 per cent, while bonds and property lost value.
The figures also show that the value of charity investments fell by 1.1 per cent in the first half of 2009, and by 13.6 per cent over the past 12 months.
"The markets began the year very negatively, but have since rebounded very sharply almost to where they started," said John Hildebrand, an investment manager at investment house Rensburg Sheppards.
"The question is whether they will continue to rise. This rebound is happening because, although things still look bad, it's not as bad as everyone feared.
"People were expecting Armageddon, but they're just facing a sharp recession."
John Kelly, head of client investment at investment house CCLA, said that within asset classes there were wide variations in performance.
"The lesson to take from this is that charities need to look at their long-term asset allocation," he said.
"If you try to predict what the market will do in the short term, you will burn up all your profit in your costs."