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 dropdowns 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 (turquoise bars).  The date shown is the end of each 5-year period, so if you see 1 July 2012 in the chart the turquoise 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 273 five year periods since 1994. The results:

  • 7.08% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £4,077 average extra return after 5 years – from an £10,000 initial investment
  • 91.94% chance of outperformance - Dynamic Fund Ratings outperformed in 251/273 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 100% of the FTSE All Share yield on a 3 year rolling basis. 

How effective is Dynamic Fund Ratings in this sector?

We tested the effectiveness of Dynamic Fund Ratings within the UK Equity Income sector, analysing 273 five year periods since 1994. The results:

  • 4.02% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,179 average extra return after 5 years – from an £10,000 initial investment
  • 93.04% chance of outperformance - Dynamic Fund Ratings outperformed in 254/273 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 273 five year periods since 1994. The results:

  • 9.65% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £5,850 average extra return after 5 years – from an £10,000 initial investment
  • 92.31% chance of outperformance - Dynamic Fund Ratings outperformed in 252/273 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 based on independent fund data)

Europe ex-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 273 five year periods since 1994. The results:

  • 5.99% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £3,374 average extra return after 5 years – from an £10,000 initial investment
  • 97.44% chance of outperformance - Dynamic Fund Ratings outperformed in 266/273 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 273 five year periods since 1994. The results:

  • 8.12% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average Global fund
  • £4,778 average extra return after 5 years – from an £10,000 initial investment
  • 89.01% chance of outperformance - Dynamic Fund Ratings outperformed in 243/273 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 245 five year periods since 1996. The results:

  • 2.70% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,424 average extra return after 5 years – from an £10,000 initial investment
  • 77.96% chance of outperformance - Dynamic Fund Ratings outperformed in 191/245 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1996. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 based on independent fund data)

Asia Pacific ex-Japan

Asia Pacific ex-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 ex-Japan sector, analysing 269 five year periods since 1994. The results:

  • 1.54% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £793 average extra return after 5 years – from an £10,000 initial investment
  • 72.12% chance of outperformance - Dynamic Fund Ratings outperformed in 194/269 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1994. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 261 five year periods since 1995. The results:

  • 5.53% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £3,088 average extra return after 5 years – from an £10,000 initial investment
  • 92.72% chance of outperformance - Dynamic Fund Ratings outperformed in 242/261 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 261 five year periods since 1995. The results:

  • 5.45% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £3,038 average extra return after 5 years – from an £10,000 initial investment
  • 70.50% chance of outperformance - Dynamic Fund Ratings outperformed in 184/261 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 252 five year periods since 1996. The results:

  • 1.63% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £844 average extra return after 5 years – from an £10,000 initial investment
  • 91.70% chance of outperformance - Dynamic Fund Ratings outperformed in 232/252 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1996. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 215 five year periods since 1999. The results:

  • 2.42% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,273 average extra return after 5 years – from an £10,000 initial investment
  • 85.58% chance of outperformance - Dynamic Fund Ratings outperformed in 184/215 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1999. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 261 five year periods since 1995. The results:

  • 3.58% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,922 average extra return after 5 years – from an £10,000 initial investment
  • 88.51% chance of outperformance - Dynamic Fund Ratings outperformed in 231/261 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 252 five year periods since 1996. The results:

  • 2.59% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,364 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 turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1996. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 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 261 five year periods since 1995. The results:

  • 3.91% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,116 average extra return after 5 years – from an £10,000 initial investment
  • 88.89% chance of outperformance - Dynamic Fund Ratings outperformed in 232/261 five year periods 

This is illustrated in the chart below. The turquoise columns represent the return of Dynamic Funds Ratings for each five year period since 1995. The grey line represents the sector average. Wherever the turquoise column is higher than the grey 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: turquoise bars; Sector average: grey line)

 

Annual Performance Over Past 5 Years

 

(all figures as at 1 April 2022 based on independent fund data)