Dynamic Fund Ratings

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.

We call our ratings system Dynamic Fund Ratings, which is based on a type of momentum investing. Momentum investing at its simplest means buying an investment (in this case a fund) which is already performing well on the likelihood that it will continue to perform well. There is lots more explanation here.

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 (blue bars).  The date shown is the end of each 5-year period, so if you see 1 July 2012 in the chart the blue 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 240 five year periods since 1994. The results:

  • 7.60% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £4,420 average extra return after 5 years – from an £10,000 initial investment
  • 93.33% chance of outperformance - Dynamic Fund Ratings outperformed in 224/240 five year periods 

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

 

Annual performance over the past 5 years

 

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 2.68 12.16 22.21 -8.50 22.02 57.13
Sector Average -1.23 9.07 20.04 -2.62 7.01 34.76

(all figures as at 1 July 2019 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 240 five year periods since 1994. The results:

  • 4.45% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,433 average extra return after 5 years – from an £10,000 initial investment
  • 96.67% chance of outperformance - Dynamic Fund Ratings outperformed in 232/240 five year periods 

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

 

Annual performance over the last 5 years

 

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings -0.27 11.19 17.32 4.39 9.14 48.23
Sector Average -1.55 6.04 17.11 -0.28 7 30.44

(all figures as at 1 July 2019 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 240 five year periods since 1994. The results:

  • 10.24% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £6,280 average extra return after 5 years – from an £10,000 initial investment
  • 91.25% chance of outperformance - Dynamic Fund Ratings outperformed in 219/240 five year periods 

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

 

Annual performance over the last 5 years

Time Period 0-12 Months 12-24 Months 24-36 Months 36-48 Months 48-60 Months 5 Years Overall
Dynamic Fund Ratings -2.48 22.28 38.88 -6.75 8.98 68.30
Sector Average -5.86 17.20 34.91 -5.49 9.87 54.55

(all figures as at 1 July 2019 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 240 five year periods since 1994. The results:

  • 6.11% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £3,454 average extra return after 5 years – from an £10,000 initial investment
  • 97.5% chance of outperformance - Dynamic Fund Ratings outperformed in 234/240 five year periods 

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

 

Annual performance over the last 5 years

 

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 0.08 5.58 25.35 11.32 23.95 82.74
Sector Average 4.47 3.11 26.27 6.19 4.62 51.12

(all figures as at 1 July 2019 based on independent fund data)

 

Global Growth

Global Growth 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 Growth sector, analysing 240 five year periods since 1994. The results:

  • 7.9% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average Global fund
  • £4,626 average extra return after 5 years – from an £10,000 initial investment
  • 88.75% chance of outperformance - Dynamic Fund Ratings outperformed in 213/240 five year periods 

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

 

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

 

Global Growth - Dynamic Fund Ratings vs. Sector Average since 1994

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings -1.46 16.22 27.2 13.12 6.01 74.7
Sector Average 8.87 9.12 20.88 8.70 8.89 69.97

(all figures as at 1 July 2019 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 212 five year periods since 1996. The results:

  • 2.48% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,302 average extra return after 5 years – from an £10,000 initial investment
  • 75.47% chance of outperformance - Dynamic Fund Ratings outperformed in 160/212 five year periods 

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

 

Annual performance over the last 5 years

 

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 4.14 8.99 28.83 1.09 -2.65 43.9
Sector Average 7.38 3.65 24.69 5.12 2.28 49.22


(all figures as at 1 July 2019 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 236 five year periods since 1994. The results:

  • 1.34% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £688 average extra return after 5 years – from an £10,000 initial investment
  • 71.19% chance of outperformance - Dynamic Fund Ratings outperformed in 168/236 five year periods 

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

 

Annual performance over the past 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings -0.25 9.10 27.15 4.39 18.18 70.72
Sector Average 5.46 7.48 26.15 6.52 9.90 67.38

(all figures as at 1 July 2019 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 228 five year periods since 1995. The results:

  • 6.05% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £3,413 average extra return after 5 years – from an £10,000 initial investment
  • 96.05% chance of outperformance - Dynamic Fund Ratings outperformed in 219/228 five year periods 

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings -9.84 23.55 -0.75 36.13 18.7 78.63
Sector Average -1.35 10.7 22.62 8.61 17.62 71.07

(all figures as at 1 July 2019 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 228 five year periods since 1995. The results:

  • 5.17% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,865 average extra return after 5 years – from an £10,000 initial investment
  • 69.3% chance of outperformance - Dynamic Fund Ratings outperformed in 158/228 five year periods 

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 12.54 14.21 17.28 12.99 15.33 96.43
Sector Average 12.99 12 20.47 14.96 16.1 103.48

(all figures as at 1 July 2019 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 219 five year periods since 1996. The results:

  • 1.67% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £865 average extra return after 5 years – from an £10,000 initial investment
  • 90.91% chance of outperformance - Dynamic Fund Ratings outperformed in 200/219 five year periods 

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 3.43 1.41 5.54 11.17 3.41 27.27
Sector Average 5.74 0.58 5.27 7.62 4.22 25.57

(all figures as at 1 July 2019 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 182 five year periods since 1999. The results:

  • 2.70% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,427 average extra return after 5 years – from an £10,000 initial investment
  • 89.56% chance of outperformance - Dynamic Fund Ratings outperformed in 163/182 five year periods 

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 8.07 -1.22 4.47 5.16 -2.61 14.22
Sector Average 5.48 0.33 6.27 3.60 2.39 19.29

(all figures as at 1 July 2019 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 228 five year periods since 1995. The results:

  • 3.80% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,052 average extra return after 5 years – from an £10,000 initial investment
  • 90.35% chance of outperformance - Dynamic Fund Ratings outperformed in 206/228 five year periods 

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 0.84 9.41 16.22 5.54 8.22 46.46
Sector Average 3.59 5.04 16.35 2.45 7.12 38.94

(all figures as at 1 July 2019 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 219 five year periods since 1996. The results:

  • 2.91% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £1,544 average extra return after 5 years – from an £10,000 initial investment
  • 93.15% chance of outperformance - Dynamic Fund Ratings outperformed in 204/219 five year periods 

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 2.03 4.3 12.84 3.68 5.26 31.05
Sector Average 3.32 2.44 10.62 3.03 4.66 26.24

(all figures as at 1 July 2019 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 228 five year periods since 1995. The results:

  • 4.22% extra growth per annum - achieved by the Dynamic Fund Ratings vs the average sector fund
  • £2,298 average extra return after 5 years – from an £10,000 initial investment
  • 89.91% chance of outperformance - Dynamic Fund Ratings outperformed in 205/228 five year periods 

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

 

Annual performance over the last 5 years

Time Period

0-12

Months

12-24

Months

24-36

Months

36-48

Months

48-60

Months

5 Years Overall
Dynamic Fund Ratings 1.49 8.78 13.12 1.61 4.94 33.17
Sector Average 4.29 4.85 14.55 3.21 6.83 38.11

(all figures as at 1 July 2019 based on independent fund data)

Liontrust 2019