Riding the global waves: Growth feels comfortable but investors must stay alert

Risk assets will reward – but on a bumpier path

It will not have gone unnoticed by investors that the reward from holding growth style funds has been nothing short of spectacular this year.

Without wishing to unfairly single out a particular manager, a perfect example of this characteristic is the Polar Capital Global Technology fund. It has a long track record spanning many market cycles and is therefore useful for context and statistical significance. We still believe this manager is 'best in class', but the fund has exhibited one of the most extreme outperformance readings we have seen. The chart below shows rolling one-year information ratio (IR) - a measure of excess risk and reward for the fund against a recognised major global equity index. It is constructed using...