F&C Asset Management : Fund Watch Survey Q2 2015

For immediate release

PRESS RELEASE 4 August 2015 Increasing number of funds achieving top quartile returns, according to F&C's Fund Watch survey LONDON, 4 August 2015 - The latest quarterly Fund Watch survey from the F&C Multi-Manager team reveals that 4.2% of funds, (46 of a possible 1,104), consistently achieved top quartile returns, which is near the historic high of 5%, and significantly up from 2.8% of funds achieving this same feat in Q1.

The F&C MM Solutions Consistency ratio is a review of the 12 major Investment Association (IA) sectors, highlighting those funds that are consistently above average in each of the last three years, and those consistently top quartile. However, the latest review sees the volatile second quarter of 2012 falling out of the data series, with consistency picking up as a result, and therefore there are still a surprisingly limited number of funds beating their peers on a regular basis.
Japan led top quartile returns in Q2 2015, with 8.7% of funds in the IA Japan sector achieving consistently top quartile returns - double that of the last quarter. It was closely followed by the IA UK Equity Income and IA UK All Companies sectors, with 7.6% and 6.3% of funds, respectively, being the most consistent.

Rob Burdett, co-head of the F&C Multi-Manager Team, commented: "Given the volatility of the Japanese market over the past 3 years, it is pleasing to see many active managers steering a steady path and achieving consistent returns for investors, making it the top sector for consistent returns. We think the Japanese market looks attractive and have an overweight position, as we believe fundamentals and earnings growth are positive."

The survey also revealed that although the IA UK Smaller Companies sector did not have any consistent funds over the quarter, the sector was the best performing as a whole. This was due to the sector benefiting from domestic recovery and a tailwind of relative cheap valuation compared to other areas of the market.

Kelly Prior, Investment Manager in the F&C Multi-Manager Team, said "With divergent central bank policy now in an established trend, there are likely to be increasing fireworks from both currency and bond markets as investors grapple with the ramifications for global growth. We expect volatility to remain a feature of markets, and think that in the bond space in particular that picking your manager or blend of managers is going to be key to a smooth long term return profile." ENDS

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Notes to editors: About BMO Global Asset Management

BMO Global Asset Management is a global investment manager delivering service excellence from
24 offices in 14 countries to clients across five continents. Including discretionary and nondiscretionary assets, BMO Global Asset Management had more than US$254 billion in assets
under management, as of April 30, 2015.
Headquartered by four multi-disciplined investment teams based in Toronto, Chicago/Milwaukee, London and Hong Kong, the organization is complemented by a network of world-class boutique managers strategically located across the globe. They include the soon to be called BMO Real Estate Partners, F&C Investments, LGM Investments, Monegy, Inc., Pyrford International Ltd., and Taplin, Canida & Habacht, LLC. With operations throughout North America and Europe, and in Abu Dhabi, Mumbai, Beijing, Shanghai, Hong Kong, Melbourne and Sydney, BMO Global Asset Management has been recognized by Pension & Investments as one of the world's largest 100 asset managers based on combined assets under management as of December 31, 2014 and is a signatory of the United Nations-supported Principles for Responsible Investment initiative (UNPRI).
BMO Global Asset Management is a part of BMO Financial Group (NYSE: BMO), a fully diversified financial services organization with C$633 billion as of April 30, 2015, and more than 47,000 employees.

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