47% of 7IM’s Unit Trust Funds Have Underperformed
- £6.5 Billion held in 7IM’s 17 funds
- 72% of investors savings held in their unit trust funds are placed in funds that have underperformed.
- None of 7IM’s funds have managed to consistently rank in the top 25% of funds in their sectors for growth.
This article and attached report provides a performance and ranking analysis of all unit trust funds managed by 7IM (Seven Investment Management).
7IM currently manage 17 unit trust funds that hold a combined total of £6.5 Billion. For this report we analysed each fund for growth during the 1, 3 & 5 year period up to January 2017 and provide a performance rating based on how each fund ranked in their sector for growth.
7IM Fund Performance Overview
In our full report we analysed the 1, 3 & 5-year growth returned by each 7IM fund and provide the exact sector ranking of each fund during this period.
Each fund is also provided with an overall Yodelar rating based on how it consistently performed within its particular sector. This rating takes into account 2 important factors that help to identify the overall quality of each fund.
- The comparative performance of a fund alongside all other competing same sector funds
- The consistency of the performance delivered by that fund.
Based on the above, each fund with 5-year performance history is rated as either ‘Top’, ‘Mediocre’ or ‘Poor’.
5-Year Fund Performance Summary
There is a total of 17 Seven IM investment funds of which 11 have at least 5 years performance history.
As none of 7IM’s funds have managed to maintain top quartile (Top 25%) ranking in their sectors consistently over the recent 5 year period, none of their funds rated as consistently ‘Top’ performing.
3 of their funds rated as ‘Mediocre’ as over the most recent 5 years they have managed to rank consistently better than at least 50% of all other funds in their sectors.
8 of the 11 funds managed by 7IM that have at least 5-years history were rated as ‘Poor’. A poor rating is applied to funds that have underperformed in comparison to other competing same sector funds. These funds have ranked in the bottom 50% of funds in their sectors for growth during the most recent 5 year period.
Promising Start For 7IM’s New Funds
6 of the 17 funds under the management of 7IM are relatively new funds with under 5 years performance history. These funds lack the data to provide a longer-term, performance comparison with other competing same sector funds, but based on an analysis of their performance since their inception, 7IM have a number of promising funds that have delivered ‘Top’ performance to date.
The ‘7IM Unconstrained fund’ is one of the relatively new funds under the management of 7IM that has performed comparatively well. This fund was launched on 30th January 2012 and despite being their 2nd smallest fund it has delivered growth that has consistently outperformed at least 93% of same sector funds.
The remaining 5 new funds managed by 7IM have less than 2 years history with 2 ranking in the top quartile of performers in their sector over the most recent 12 months. However, 3 of their funds haven’t been as competitive. The ‘7IM US Equity Value’ fund sits within the North America sector and was launched on 15th April 2015. Since it’s launch this fund has struggled in comparison to other same sector funds. During the 12-month period up to January 2017 this fund returned growth of 28.05%, which is in the bottom 9% of funds in the entire sector. In comparison, the top-performing fund in the North American sector returned growth of 61.32% during the same period.
7IM Funds Have True Potential?
Although 7IM do not have any funds that have consistently maintained ‘Top’ quartile sector performance over the recent 5-year period, 7IM have a number of young funds that have been highly competitive from the outset. While their young age means they lack long-term consistency, they have delivered top performance to date.
Summary
- Currently there are no funds under the management of 7IM that have consistently delivered top quartile sector performance during the most recent 5-year period.
- 11 of their funds have at least 5 years history. 8 of which have ranked in the bottom 50% of funds in their sectors and have a Yodelar rating of ‘Poor’.
- 3 of their funds with under 5 years history have delivered ‘Top’ quartile sector performance since their inception. While they lack long-term data, they have delivered to date.
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