Less than 4% of funds deliver consistent top quartile returns over three years
In the latest edition of the study, the total number of funds providing above average returns in each of the last three years also improved.
According to firm's Multi-Manager Q3 2023 Fund Watch survey, of the 1,323 funds tracked across 12 sectors, 3.9% delivered consistent top quartile returns on a rolling basis over three years, up from 2.1% in the period. The historical average since the survey began in 2008 was between 2-4%.
In the third quarter of last year, the number of funds delivering consistent, top quartile returns over three years reached an all-time low, with only 0.3% achieving this feat.
The survey for that period found that the IA Japan sector saw the highest proportion of consistent top quartile funds, while the IA Strategic Bond had none.
Equity funds take majority of sustainable inflows in 2023
In the latest edition of the study, the total number of funds providing above average returns in each of the last three years also improved. Out of 1323, 262 funds delivered above average performance on a rolling basis the past three years, compared to 165 last quarter.
Again, IA Japan was the top reporting sector, with 31% funds securing above average returns (18 out of 52 funds). Meanwhile, the IA UK Equity Income sector had the least number of funds achieving this, at only 13.5% (ten out of 74).
The top performing fund throughout Q3 was the Guinness Global Energy fund, which has a large cap value bias and uses a concentrated list of stocks to gain exposure to equities in exploration and production of oil, gas and other energy sources.
The fund has returned 186% over the last three years, compared to the IA Commodity/Natural Resources sector average of 60.9%, according to data from FE fundinfo. In the last
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