Tillit’s first annual performance report of fund universe revealed seven funds at risk of being removed from its investable universe.
The report, which was focused on active funds, looked at overall performance and why certain funds have been underachieving over a more extended time. The seven funds at risk include Alquity Future World, AXA ACT Carbon Transition Sterling Buy and Maintain Credit, the European Opportunities Trust, First Sentier Responsible Listed Infrastructure, International Public Partnerships, Jupiter Strategic Bond, and the Biotech Growth Trust.
Following the report, each of these seven funds will undergo a formal review. Tillit provided an analysis of each of the underperforming funds within the report to further understand their records.
In response to its underperforming funds, Tillit noted in the report: “Performance is never linear and it is not unusual for some investment styles to underperform for long periods of time and then rebound and sometimes make up the underperformance (and more).
“The key thing is to assess performance in the broader context of the market environment, composition of the benchmark it is aiming to outperform, and try to avoid making rash decisions based on headline performance figures.”
Overall, Tillit found a positive performance of its active funds. Some 82% of funds in the universe with a track record of 10 years outperformed their peers, and 74% beat their benchmarks. For funds with a five-year track record, 74% beat out their peer group and 65% outperformed their benchmark. In total, there are currently 79 active funds in the Tillit Universe and 64 with managers who have been there at least five years.
The top-performing fund was the L&G Global Technology Index, which returned £6,656 over 10 years based on a £1,000 investment. It was followed by AXA Framlington Global Technology at £5,597, Scottish Mortgage Investment Trust at £4,418, and VinaCaptial Vietnam Opportunity at £3,927.
Felicia Herjtman, co-founder of Tillit, said: “We must hold ourselves accountable. Our customers trust us to offer best-in-class investment options across asset classes, regions and styles.
“The Tillit Annual Performance Report 2023 plays a key part in this and the transparency of the findings is equally important. We hope that the results of the report will empower investors to make better, more informed investment decisions and ultimately, build trust with our customers.”
In November, Tillit removed Supermarket Income REIT from its investable universe to its ‘dark’ universe, meaning investors can maintain the holding but cannot add to it or repurchase.