F&C ASSET MANAGEMENT
According to the survey, 49 out of 1,099 (4.5 per cent) funds recorded consistent top quartile returns over three consecutive years as of the end of Q3 2014. This was towards the top end of the historical average of between 2 per cent and 5 per cent and was driven by 9.4 per cent in the IMA £ Strategic Bond sector.
This represented a change in fortunes for the IMA £ Strategic Bond sector, having failed to record any top consistent funds in the previous three quarters. It was partly attributable to the majority of poor performance data of 2011 following the Greek crisis falling out of the analysis. In contrast, the IMA Japan sector was the only sector that failed to have any consistent top quartile funds, because of 'Abenomics' causing a sea change in markets and the Yen during the period.
"With the time period now moving on from the eye of the Greek crisis storm and into the window of a prolonged period where risk assets outperformed, we saw some stark changes last quarter with a rotation in the consistency winners," said Rob Burdett, Co-Head of Multi-Manager for F&C Investments. "The IMA £ Strategic Bond sector was the clear winner in Q3 2014. Not only did it top the charts for top quartile returns over three years, it also secured the most funds achieving median returns over the same period, with nearly a third achieving this feat. In contrast, the IMA Japan experienced a change in fortunes, featuring near to the bottom of top quartile and median returns consistency tables."
The survey also revealed that, of the 37 IMA sectors, the IMA North America sector achieved the highest return in Q3 2014, generating 5.36 per cent and benefiting from strong corporate earnings and encouraging economic growth. In a period when geopolitical concerns were high in Eastern Europe and risk assets were sold off, the IMA European Smaller Companies fared the worst of the IMA sectors. There was a broad spread of returns within the IMA Fixed Income sectors. A decrease in bond yields at the slightly longer end of the curve caused the IMA UK Index Linked Gilt sector to generate 4.9 per cent, whilst the IMA £ High Yield fell 2.4 per cent as a result of the pull back in risk assets.
"We remain in a market environment driven by top down central bank policies, but are starting to see the fortunes of geographies diverge as the success of these policies comes to the fore," said Kelly Prior, Investment Manager in F&C Investments' Multi-Manager Team. "This will no doubt
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create opportunity, but also volatility and a more difficult environment for fund managers to perform consistently."
F&C is focused exclusively on managing money for its clients. It manages assets for a combination of insurance clients, institutional investors, intermediaries and private individuals. F&C invests across all major asset classes - equities, fixed income and property - and has specialist expertise in asset allocation, alternative investments, liability driven investments, multi-manager, private equity funds and Environmental Social and Governance (ESG) Investing. The F&C Group includes F&C REIT, a global real estate asset manager.
F&C has a strong footprint in the U.K. and the rest of Europe with assets under management of approximately £83 billion as at June 30, 2014. F&C has a rich heritage that dates back almost 150 years and can be traced back to the founding in 1868 of the Foreign & Colonial Investment Trust.
F&C is a part of BMO Global Asset Management, a global investment manager delivering service excellence from 24 offices in 14 countries to clients across five continents. Including discretionary and non-discretionary assets, BMO Global Asset Management had approximately US$280 billion in assets under management, as of July 31, 2014. BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a highly diversified financial services organization based in North America with approximately 47,000 employees as of July 31, 2014.
Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount inve sted. The information, opinions estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. F&C Group Companies may from time to time deal in investments mentioned herein on behalf of their clients. The source of information in all graphs is F&C unless otherwise stated. F&C Management Limited is authorised and regulated by the Financial Conduct Authority FRN: 119230 F&C Management Limited is a member of the F&C Group. The F&C Group is wholly owned by BMO Global Asset Management (Europe) Limited, which is itself a wholly owned subsidiary of the Bank of Montreal. F&C, the F&C logo, REO and the 'reo' logo are registered trademarks of F&C Asset Management plc. F&C Investments and the F&C Investments logo are trademarks of F&C Management Limited. © Copyright F&C Management Limited 2014. All Rights Reserved. Neither this document nor any part of it may be reproduced by any party whether by photocopying or storing in any m edium by electronic means or otherwise without the prior approval of F&C Management Limited.
F&C Management Ltd accepts no liability in respect of the information or any views expressed herein which may be subject to c hange without notice at any time.
Media Contacts:
Richard Janes
Director, Communications
Richard.janes@fandc.com
Tel: +44 (0) 20 7011 4298
fandc.sc@fticonsulting.com
Tel: +44 (0) 20 3727 1888
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