BMO GAM FundWatch: Performance consistency improves but 'something doesn't add up'

BMO GAM FundWatch survey

The number of funds consistently generating top-quartile returns over the last three years rose from 0.54% in Q4 2018 to 2.2% at the end of Q1 2019, marking a "return to normal levels" after heightened volatility at the end of 2018, according to new data from BMO GAM.

The three months to 31 March saw equity markets rebound and markets and asset prices rally following a particularly tumultuous December, when the FTSE All-Share, TOPIX and MSCI World fell by 3.8%, 7.1% and 7.4% respectively over the month. According to the BMO Global Asset Management Multi-Manager FundWatch survey, top-quartile returns stood at just 0.54% at the end of last year but rose to 2.2% in Q1 2019. The IA UK Smaller Companies sector was the most consistent for top quartile returns, with 10.4% of funds achieving top-quartile consistency over the rolling three years to the firs...