Dynamic Fund Ratings - The Evidence

This is our most powerful tool for consistently improving your success as an investor seeking growth.  In a nutshell they enable you to identify funds with outstanding potential. 

Within FundExpert you will see that each fund has a rating, from 1 Star to 5 Star (click here if you are an income investor).  The rating tells you if a fund should be bought (or sold) based on following a Dynamic Fund Selection process using Dynamic Fund Ratings.

For example, in theory a 5 Star rating means a high probability of extra growth compared to average. Moving beyond theory, the sector links below show you how successful it has been in practice, back to the 1990s.

Dynamic Fund Ratings - By Sector

We tested our Dynamic Fund Ratings sector by sector. Click on a sector below to see how much more growth you could have generated since the 1990s.  The charts show the individual 5-year rolling performance for Dynamic Fund Selection (orange bars).  The date shown is the end of each 5-year period, so if you see 1 July 2012 in the chart the orange bar shows the performance over the 5-year period from 1 July 2007 (start date) to 1 July 2012.

UK All Companies

UK All Companies funds invest at least 80% of their assets in UK equities which have a primary objective of achieving capital growth.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the UK All Companies sector, analysing 252 five year periods since 1994. The results:

  • 7.42% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £4,304 average extra return after 5 years – from an £10,000 initial investment
  • 93.25% chance of outperformance - Dynamic Fund Ratings outperformed in 235/252 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

UK All Companies - Dynamic Fund Ratings vs. Sector Average since 1994

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the past 5 years

(all figures as at 1 July 2020 based on independent fund data)

UK Equity Income

UK Equity Income funds invest at least 80% of their assets in UK equities which intend to achieve a historic yield in excess of 110% of the FTSE All Share yield. 

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the UK Equity Income sector, analysing 252 five year periods since 1994. The results:

  • 4.32% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,358 average extra return after 5 years – from an £10,000 initial investment
  • 96.83% chance of outperformance - Dynamic Fund Ratings outperformed in 244/252 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

UK Equity Income - Dynamic Fund Ratings vs. Sector Average since 1994

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

UK Smaller Companies

UK Smaller Companies funds invest at least 80% of their assets in equities of UK companies which form the bottom 10% by market capitalisation.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the UK Smaller Companies, analysing 252 five year periods since 1994. The results:

  • 9.95% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £6,072 average extra return after 5 years – from an £10,000 initial investment
  • 91.67% chance of outperformance - Dynamic Fund Ratings outperformed in 231/252 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

UK Smaller Companies - Dynamic Fund Ratings vs. Sector Average since 1994

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Europe excluding UK

Europe ex-UK funds invest at least 80% of their assets in European equities and exclude UK securities.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Europe ex-UK sector, analysing 252 five year periods since 1994. The results:

  • 6.02% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £3,397 average extra return after 5 years – from an £10,000 initial investment
  • 97.62% chance of outperformance - Dynamic Fund Ratings outperformed in 246/252 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Europe ex-UK - Dynamic Fund Ratings vs. Sector Average since 1994

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Global

Global funds invest at least 80% of their assets globally in equities. Funds must be diversified by geographic region. 

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Global sector, analysing 252 five year periods since 1994. The results:

  • 7.73% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average Global fund
  • £4,510 average extra return after 5 years – from an £10,000 initial investment
  • 88.49% chance of outperformance - Dynamic Fund Ratings outperformed in 223/252 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Global - Dynamic Fund Ratings vs. Sector Average since 1994

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Global Emerging Markets 

Global Emerging Markets funds invest at least 80% of their assets in emerging market equities.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Global Emerging Markets sector, analysing 224 five year periods since 1996. The results:

  • 2.39% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,253 average extra return after 5 years – from an £10,000 initial investment
  • 75.89% chance of outperformance - Dynamic Fund Ratings outperformed in 170/224 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1996. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Global Emerging Markets - Dynamic Fund Ratings vs. Sector Average since 1996

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Asia-Pacific ex-Japan

Asia Pacific Excluding Japan funds invest at least 80% of their assets in Asia Pacific equities and exclude Japanese equities.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Asia Pacific Excluding Japan sector, analysing 248 five year periods since 1994. The results:

  • 1.32% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £680 average extra return after 5 years – from an £10,000 initial investment
  • 70.97% chance of outperformance - Dynamic Fund Ratings outperformed in 176/248 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Asia-Pacific ex-Japan - Dynamic Fund Ratings vs. Sector Average since 1994

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the past 5 years

(all figures as at 1 July 2020 based on independent fund data)

Japan 

Japan funds invest at least 80% of their assets in Japanese equities.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Japan sector, analysing 240 five year periods since 1995. The results:

  • 5.90% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £3,318 average extra return after 5 years – from an £10,000 initial investment
  • 95.42% chance of outperformance - Dynamic Fund Ratings outperformed in 229/240 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Japan - Dynamic Fund Ratings vs. Sector Average since 1995

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

North America

North America funds invest at least 80% of their assets in North American Equities.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the North America sector, analysing 240 five year periods since 1995. The results:

  • 5.02% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,777 average extra return after 5 years – from an £10,000 initial investment
  • 69.17% chance of outperformance - Dynamic Fund Ratings outperformed in 166/240 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

North America - Dynamic Fund Ratings vs. Sector Average since 1995

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Sterling Corporate Bond

Sterling Corporate Bond funds invest at least 80% of their assets in Sterling denominated corporate bond securities, rated Triple B minus or above.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Sterling Corporate Bond sector, analysing 231 five year periods since 1996. The results:

  • 1.64% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £849 average extra return after 5 years – from an £10,000 initial investment
  • 91.38% chance of outperformance - Dynamic Fund Ratings outperformed in 212/231 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1996. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Sterling Corporate Bond - Dynamic Fund Ratings vs. Sector Average since 1996

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Sterling Strategic Bond

Sterling Strategic Bond funds invest at least 80% of their assets in sterling denominated fixed income securities. 

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Sterling Strategic Bond sector, analysing 194 five year periods since 1999. The results:

  • 2.58% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,361 average extra return after 5 years – from an £10,000 initial investment
  • 87.63% chance of outperformance - Dynamic Fund Ratings outperformed in 170/194 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1999. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Sterling Strategic Bond - Dynamic Fund Ratings vs. Sector Average since 1999

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Flexible Investment

The funds in this sector are expected to have a range of different investments. However, the fund manager has significant flexibility over what to invest in. There is no minimum or maximum requirement for investment in company shares (equities) and there is scope for funds to have a high proportion of shares. 

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Flexible Investment sector, analysing 240 five year periods since 1995. The results:

  • 3.72% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,005 average extra return after 5 years – from an £10,000 initial investment
  • 90.00% chance of outperformance - Dynamic Fund Ratings outperformed in 216/240 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Flexible Investment - Dynamic Fund Ratings vs. Sector Average since 1995

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Mixed 20-60% Shares

Funds in this sector are required to have a range of different investments. The fund must have between 20% and 60% invested in company shares (equities). At least 30% of the fund must be in fixed income investments (for example, corporate and Government bonds) and/or “cash” investments.  “Cash” can include investments such as current account cash, short-term fixed income investments and certificates of deposit.

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Mixed 20-60% Shares sector, analysing 231 five year periods since 1996. The results:

  • 2.80% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,482 average extra return after 5 years – from an £10,000 initial investment
  • 92.64% chance of outperformance - Dynamic Fund Ratings outperformed in 214/231 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1996. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Mixed 20-60% Shares - Dynamic Fund Ratings vs. Sector Average since 1996

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)

Mixed 40-85% Shares

Funds in this sector are required to have a range of different investments. However, there is scope for funds to have a high proportion in company shares (equities). The fund must have between 40% and 85% invested in company shares. 

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the Mixed 40-85% Shares sector, analysing 240 five year periods since 1995. The results:

  • 4.07% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,207 average extra return after 5 years – from an £10,000 initial investment
  • 89.58% chance of outperformance - Dynamic Fund Ratings outperformed in 215/240 five year periods 

This is illustrated in the chart below. The orange columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The blue line represents the sector average. Wherever the orange column is higher than the blue line Dynamic Fund Ratings outperformed the sector average.  

Find the best momentum funds by searching for the sector here.

Mixed 40-85% Shares - Dynamic Fund Ratings vs. Sector Average since 1995

(Dynamic Portfolio: orange bars; Sector average: blue line)

Annual performance over the last 5 years

(all figures as at 1 July 2020 based on independent fund data)