BMO GAM FundWatch: Central bank 'comfort blanket' helps fund performance

quality growth equity and long-duration bonds dominate

The number of funds delivering consistent top-quartile performance increased once again, as central bank pivots continues to benefit asset prices, according to BMO Global Asset Management.

Of the 1,088 funds in the 12 main Investment Association (IA) sectors, just 25, or 2.3%, managed to achieve consistent top quartile returns in each of the last three 12-month periods, as of the end of Q2 2019, BMO GAM's latest FundWatch survey found. But this figure was an improvement on the 2.2% reported at the end of Q1. Quality growth equity and long-duration bond strategies dominated the most consistent performers "as the comfort blanket of central bank policy that keeps investors at the party remains in place", said Kelly Prior, investment manager in BMO GAM's multi-manager team. ...