Just 1.8% of funds consistently achieved top quartile performance in past three years - BMO

Compares to 3.2% in previous quarter

Pedro Gonçalves
clock • 2 min read

The number of funds consistently achieving top quartile returns over three years fell to 1.8% in Q1 2021, according to according to the latest BMO Global Asset Management Multi-Manager Fund Watch survey.

According to the survey, which analysed 1,085 funds with a three-year track record in the 12 main IA sectors, just 1.8% of funds consistently achieved top quartile performance over the past three 12-month periods. This compares to 3.2% in the previous quarter and is below the historic average of between 2% and 4%. The drop is the result of managers who have increasingly specialised in investment styles across the funds industry, which drives less consistent performance in bifurcated markets. Kelly Prior, investment manager in BMO Global Asset Management's multi-manager people team,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

FCA launches consultation on private stock market

FCA launches consultation on private stock market

Move follows Mansion House commitment

Linus Uhlig
clock 17 December 2024 • 3 min read
Partner Insight: Is FOMO overruling investment basics?

Partner Insight: Is FOMO overruling investment basics?

In 2020 we introduced our bubbles chart showing how concentrated investors were in a particular theme. Four years on we look at what, if anything, has changed, and what it means for investors going forward.

Orbis Investments
clock 16 December 2024 • 3 min read
Special situations: How to spot a good management team

Special situations: How to spot a good management team

'We prefer management teams that are considered rather than overly promotional'

Henry Flockhart and Andy Gray
clock 10 December 2024 • 5 min read