The IA Europe ex UK sector has been the least consistent sector to reach above median returns in each of the last three 12 month periods as well among the least consistent for top quartile returns over the past six months, according to a survey from BMO Global Asset Management.
Only 3.5 per cent of funds in the IA Europe ex UK sector saw above median returns in each of the last three 12-month periods, the BMO’s Fund Watch survey shows.
The sector, together with other four, namely the IA Asia Pacific ex Japan, IA Japan, IA North America and IA £ Strategic Bond sectors did not have any consistently top quartile funds over Q3.
Additionally, only 28 out of over 1,000 funds in the 12 IA sectors, or 2.5 per cent of funds, achieved top-quartile returns over three years.
However, according to FE data, the IA Europe ex UK sector has consistently performed better than the IA Europe including UK over 10, five, three and one year periods.
Over a one-year period, the IA Europe ex UK sector has returned 15.87 per cent, compared to a 11.96 per cent of the IA Europe including the UK.
Meanwhile, the BMO survey shows the IA Corporate Bond sector was the most consistent sector for top quartile returns over the past six months achieving top-quartile returns in Q2 with 9.9 per cent of funds, and 12.5 per cent of funds which managed to achieve this in Q3.
F&C Multi-Manager Solutions investment manager Kelly Prior says: “With five of the 12 sectors failing to have a fund with consistently top quartile performance for the second quarter in a row it seems that repeatable good performance is as scarce as ever.
“The increasing consistency of IA sterling corporate bond funds coincides with the start of the fall in bond yields around the globe as central banks around the world prop up slowing economies. Meanwhile consistency in core markets such as the UK, US and Europe seems as rare as ever.”