Data from BMO Global Asset Management shows the number of funds delivering top quartile performance is running below the historic average.

According to its Fund Watch survey, 1.24% of funds delivered consistent top quartile performance over three years as at the end of the fourth quarter of 2017.

This compares to 0.8% at the end of the third quarter of 2017 and the historic average of between 2% and 5%.

The most consistent funds sector for top quartile returns was IA £ Strategic Bond at 4.6%, followed by the IA UK Smaller Companies (4.4%) and the IA Japan sector (4.2%).

The amount of funds generating above-median returns in each of the last three 12-months fell from 9.7% to 9%. All 12 main IA sectors had funds which met the criteria. The IA UK Smaller Companies was the most consistent sector with 17.4% of funds achieving the feat.

Kelly Prior, an investment manager in BMO’s multi-manager team, comments: ‘Our survey shows fund managers are still finding it challenging to deliver consistent performance over the long-term.

‘While we have seen a slight increase in the number of funds delivering top quartile performance over three years, it’s still falling short of the industry average.’ (TS)

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