SINGAPORE (Apr 16): Robo-advisory services, artificial intelligence, data analytics and machine learning may have played a part in the performance of actively managed funds in 2017. Companies involved in these technologies saw their prices rise sharply in 2017 and were components of several tech funds. These tech funds, according to Morningstar’s data, have outperformed their benchmarks and other sectors.

For instance, Alphabet is a component of at least two of the top five funds in the threeyear category for the Thomson Reuters Lipper Fund Awards 2018, as are Microsoft and Amazon.com. Among Asian funds that rank among the top five, Alibaba Group Holding and Tencent Holdings are a commonality. Facebook is also a constituent of two top-performing funds. Some may argue that investors might as well invest directly in these stocks without incurring the additional fees (see tables for management fee and front load incurred).

Most mutual fund prospectuses have a disclaimer stating that past performance is not an indicator of future outcomes. This would be particularly true of the winners of this year’s Thomson Reuters Lipper Fund Awards. (The top-performing funds on a three- and five-year horizon are determined based on Morningstar’s metrics periods.) The winners in both categories had significant tech components.

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