TMT and European funds have been the best perfor-mers over the last 15
years despite being among this year's worst performers.
Figures published by Autif this week reveal that £1,000 invested in
the average TMT fund 15 years ago would now be worth £7,498 while
£1,000 inv-ested 12 months ago would now be worth £450.
A £1,000 sum invested in the average European fund 15 years ago would
now be worth £7,107.
However, the Autif figures also show that over the 15-year period, only
four sectors averaged more than the FTSE All-Share index, which would have
turned £1,000 into £5,345.
All but the TMT, Europe, North America and North American smaller
companies sectors averaged less than the index, building the case for
The figures obliterate the case for investing in building societies,
however, with only Japanese funds averaging lower performance than savings
account ret-urns. The average Japanese fund returned just 66.5 per cent
over 15 years while the average UK savings instant access account returned
103.2 per cent.
Hargreaves Lansdown investment manager Ben Yearsley concedes that most
fund managers do not outperform the index over a longer period but he still
believes that active funds are the way to achieve the best returns.
He says: “The best fund managers will outperform. If you look at Anthony
Bol-ton's Fidelity special situations fund, that is more than double the
FTSE All-Share over 15 years.”