Five funds that have powered through choppy markets
Only a select band of funds have consistently topped the performance charts
Five funds stand out as strong picks from the select band which have consistently posted top returns amid choppy markets, according to experts.
Just 20 of 1,085 funds surveyed by BMO, an asset manager, delivered returns in the top 25pc of their sectors in each of the past three years.
Kelly Prior, of BMO, said the number of funds achieving the feat had fallen to especially low levels as different investment styles had switched in and out of favour.
After the pandemic struck, technology stocks surged as economies locked down, but since November s coronavirus vaccine breakthroughs, value shares in companies that will benefit the most from the easing of restrictions have led the way.
Value stocks are resurgent, lifting the funds that back them
The turnaround in stock markets as lockdowns ease, lifting the shares of companies hit hardest by the pandemic, has sent funds that were languishing at the bottom of the performance charts last year surging to the top of the table.
The rebound in the shares of “value” companies, such as high street retailers, banks and leisure and hospitality firms, follows prolonged poor performance and heavy falls last year.
Funds that back them racked up losses for their investors and trailed rivals in 2020 but have now sprung into life. Among funds investing in British stocks, 60 which were among the bottom 25pc performers last year are now in the top 25pc for 2021.