Wellian Investment Solutions has revealed the disparity in overall returns between the best and worst performing funds in the UK All Companies sector this year, with the best fund delivering a 24.62 per cent return and the worst falling by 14.65 per cent on a year to date basis.
Wellian’s research indicates that in comparison, over the same period, the FTSE 100 and All Share are down by 3.8 per cent and 1.47 per cent respectively. However, it has also shown that 75 per cent of funds within the IA UK All Companies sector have outperformed the All Share and 90 per cent have outperformed the FTSE 100.
Chief Investment Officer of Wellian Investment Solutions; Richard Philbin says: “Even though the FTSE 100 and FTSE All Share are in negative territory for the year, relatively few funds within the UK All Companies sector are suffering the same fate. For example, due to the constituent components within the FTSE 100, the index has been particularly badly hit by the oil price slide over the past few months.
“Having a solid understanding of exactly what you are investing in will always pay dividends; especially in a market that is likely to be particularly unforgiving over the next twelve months. We are likely to be working within a more ‘alpha’ rather than ‘beta’ market in 2016, which means we need to place even more emphasis on being highly selective of the funds we invest in within particular asset classes. As we have seen with the oil crisis, it is not enough to attempt to diversify a portfolio only using different types of assets; rather we need to ‘cherry pick’ individual managers and funds on an ongoing basis to suit the changing needs of our individual portfolios.”
