What is happening in the world of Diversified Growth Fund Investments?

CAMRADATA’s Q2 2018 report reveals the latest investment trends  

CAMRADATA, a leading provider of data and analysis for institutional investors, has published its latest investment research report for Q2 2018 on Diversified Growth Funds (DGFs), charting the performance of investments and asset managers.

Over three years’ worth of data from CAMRADATA Live (its online manager research platform) at 30 June 2018 was analysed to produce the DGF report and some key investments trends emerged.

In Q1 it was suggested that the tide may have turned against DGFs (at least in terms of investor appetite), and the latest Q2 data does nothing to challenge this claim. The DGF universe suffered net outflows of £3.41 billion in the second quarter, which means the universe has endured three consecutive quarters of negative asset flows.

However, while in Q1 only 13% of the DGF products tracked by CAMRADATA achieved a break-even or positive return, performance improved in Q2. Nearly three-quarters of the funds in the CAMRADATA universe broke even or better in the three months ending in June 2018.

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Sean Thompson, Managing Director, CAMRADATA said, “Although the last quarter was challenging for fund managers, with failing stock markets and losses on bonds, the stated intention of many DGFs is to achieve positive returns in all market conditions. In Q2, it appears that some funds failed to meet their targets.

“However, over a longer time span these funds have nearly all rewarded their investors. According to the three-year spread of annualised returns, 99% of DGFs in the database achieved a breakeven or positive return.

“Some have suggested DGFs are being usurped by a broader trend towards multi-asset investing, which makes the specific mix of strategies collected under the DGF banner appear less distinctive. However, we believe the rumours of the demise of the DGF have been exaggerated,” adds Mr Thompson.

Other Key highlights from Q2’s Diversified Growth Funds report

  • Since Q1 2018 DGF assets have decreased by £3.57bn following the trend from Q1 2018
  • As in Q1 William Blair achieved the largest percentage growth in AuM, with assets increasing by 90.9% in Q2 2018, followed by First State, Fidelity, Amundi and LGT Vestra.
  • AQR Capital Management achieved the largest asset inflows with £1.003m in Q2 2018. LGT Vestra was the runner up with £284m, followed by Insight, Amundi and Fidelity

Sean Thompson concluded, “Our investment reports are essential reading for keeping abreast of what is happening in the DGF market, providing detailed commentary and analysis on how the class has recently performed, as well as historically over the past three years.’

CAMRADATA has also published separate Q2 2018 reports on Multi Sector Income, Emerging Market Debt, Emerging Market Equity, Global Equity and UK Equity.

For more information or to receive any of the reports, please contact: [email protected]