In its Q3 FundWatch, TRMC used its Consistency Ratio to measure the proportion of funds that have performed consistently above average in each of the last three 12-month periods, as well as those that have consistently performed top quartile.
Of the 1,230 funds researched, from the 12 main IMA sectors, only 35 have been top quartile in each of the past three 12-month periods.
This increase to 2.8% of the funds researched showed a marginal improvement on Q2’s figure of 2.68% of funds achieving top quartile in all three year-long time frames.
Emerging markets did the best because it is a small sector and two Aberdeen funds delivered strong performances. TRMC said.
Meanwhile, in the Europe ex-UK sector five funds including Liontrust European Growth, BlackRock European Dynamic and Jupiter European Fund outperformed the rest of the sector.
In the UK Smaller Companies sector, Investec, Marlborough and Amati showed consistent top quartile performance.
Gary Potter, co-head of Thames River Multi-Capital, said; "Asia has been the hardest hit sector for managers to deliver consistent returns on both levels [top quartile, or above median]. This reflects a wide variation of returns from the region’s many different countries.
"However, over three years average total returns of almost 45% have been among the best of all sectors, and almost treble the IMA Global average, so it has been well worth stomaching the volatility."
TRMC also looked at whether any funds had achieved the "holy grail" of low risk and high returns and found no funds managed to combine the perfect mix of top of the sector three-year returns with bottom of the sector three-year volatility.
A few funds did manage to combine top quartile performance with lowest in sector risk though: the First State Asia Pacific Sustainability Fund, the Threadneedle European Select Fund and the Trojan Income Fund.
The overall best performing fund for last quarter was the Legg Mason Japan Fund, which TRMC said had risen by 15.6%.
"Hideo Shiozumi who runs this fund under an out-sourcing arrangement is so far ahead of his peers that he is stretching the sector average higher on his own," Potter said.
He said the fund is volatile, however, and perhaps best for pound-cost averaging an investor’s commitment to Japan.
