Report: Less Than 1% Of Funds Hit Top Quartile Returns Since 2014

The pages of a new report published by F&C Multi-Manager Solutions indicate widespread poor performance among the 1,140 funds within the Investment Association’s sectors. In total, as few as nine of the 1,140 funds were able to achieve top quartile returns over the last three years, attributed to mounting geopolitical tensions by the F&C Multi-Manager survey.

Just 0.8 per cent of the funds across the 12 IA sectors reached top quartile returns, plummeting lower than the historic average ranging from 2 per cent and 5 per cent, the report stated.

It was determined that the IA Emerging Markets sector remains the most consistent of the remaining sectors in terms of returns, with around 3.3 per cent of funds in the sector managing to come out with to those positive returns. Next came the IA £ Strategic with returns of around 2.9 per cent, IA £ Corporate Bond with a slightly lower 2.6 per cent and IA UK All Companies sectors which came out at around 1.2 per cent.

One slightly more positive finding published in the report indicated that 124 out of 1,138 funds were able to deliver better-than-median returns over the past three years, as of the close of the first quarter of 2017.

Most of these funds (25 per cent) were in the IA £ Corporate Bond sector, while the IA Global Equity and IA Sterling Strategic Bond sectors came out with 18.4 per cent and 15.9 per cent respectively.

“In the first quarter of 2017, our survey revealed an unusually low number of funds achieving consistent top quartile returns. This is not surprising given how much markets were impacted by geopolitical factors and central banks policies,” commented F&C Multi-Manager Solutions investment manager Kelly Prior.

“Politics exerted significant influence on the direction of currencies of the affected economies. Despite the Federal Reserve raising interest rates, the dollar fell back as confidence in the ability of President Trump to push through market friendly policies fell. However, the Yen was the beneficiary of this, making solid ground over sterling as a perceived safe haven currency.”

The Growing Importance of Independent Advice

On-going political and economic turbulence on a global basis is continually highlighting the critical importance of seeking expert financial advice, before making any important decisions with regard to savings, investments, pensions and other key matters. Unpredictability is making it difficult or impossible for promises to be upheld and both acknowledging and mitigating risk has never been more important.

Haven IFA is proud to offer fully independent, objective and comprehensive advice on all financial matters and at all levels. If you haven’t already established a roadmap for your own financial future, we’d be delighted to hear from you to organise a consultation.