BMO GAM: Market uncertainty takes toll on number of funds generating consistently strong returns

'Volatility has had a negative impact'

The number of funds generating consistent top quartile returns declined in the third quarter this year, as ongoing uncertainty since the onset of the Covid-19 pandemic continued to impact the market, research by BMO Global Asset Management shows.

Only 11 out of over 1,060 funds analysed in the 12 main IA sectors achieved consistent top quartile returns in each of the last three 12 month periods, as of the end of Q3 2021, according to BMO GAM's latest FundWatch survey. This was a decline on the previous quarter which saw 20 funds - or 1.9% of the total - achieving ongoing top quartile returns. This is "considerably" lower than the historic range of between 2-4%, the firm noted. UK fixed income funds suffer worst outflows since March 2020 The report highlighted the impact of rotational markets on the funds industry. Of the 12 ...