Britain’s best fund managers
Stock markets can be volatile beasts – you can be sitting on handsome gains
one minute and hefty losses the next.
With many investors nervy about a possible correction, the key is to find a
fund manager who delivers the goods irrespective of whether share prices are
rising or plummeting.
We asked fund analysts Financial Express to highlight which managers have
proved that they can consistently deliver the goods. Using a mixture
of methodology including consistent outperformance against its benchmark,
performance when markets fall or rise and a so-called risk-adjusted Alpha
rating, which takes into account volatility, they have come up with a list
of managers that cut the mustard.
In total they have collated a list of 110 managers that they suggest investors
should consider when buying a fund, but to make it easier for you we have
cherry-picked the top manager in several main sectors over a five-year
period.
Some of the names will be familiar to you, others less so, while we have also
canvassed the opinions of advisers to see if they agreed with the Financial
Express ratings.
UK EQUITY INCOME NICK PURVES,
Schroders Income (+38.6pc over five years)
When it comes to equity income funds, funds from Invesco, Artemis and Jupiter
are frequently touted as “must-have” by advisers. But Financial
Express reckons that the record of Nick Purves at Schroders means he is one
not to be ignored.
However, many financial advisers continue to favour the traditional equity
income fund favourites. Adrian Lowcock at Bestinvest says that its recent
performance has benefited from a large exposure to banks.
He added: “Performance looks very good, however when looking in more
detail much of this has been due to a strong performance in 2009 where a
large position in banks has helped deliver significant returns. The fund
continues to have a high exposure to financials and investors should be
aware of the recent volatility when investing in this fund.”
Andrew Merricks at Brighton-based Skerritt Consultants reckons that investors
should consider another fund that Purves runs – Schroder Income Maximiser.
He said: “The sector is a very crowded one and has some big names in it.
Nick Purves has done quite well and would be on the shortlist when looking
at investing in the equity income sector.
“But of particular interest if looking for income is the Schroder Income
Maximiser that Purves runs. It has hit its target of 7pc yield each year
that it has been in existence – no mean feat in this environment. Not a
strict equity income fund but one that delivers income if that’s what you’re
looking for.”
UK ALL COMPANIES TOM DOBELL,
M&G Recovery (+65.9pc)
If you are looking for a fund that has history, consistency of leadership and
a decent track record, this one has it in spades.
Since Tom Dobell took over in 2000, the M & G Recovery fund has delivered
a return of 89.8pc, against 19pc for the FTSE All Share index and 18pc for
the average fund in its peer group, the IMA UK All Companies sector,
according to Morningstar. Its strategy has remained unchanged throughout its
41-year history.
Dobell, who is only the third manager in that time, looks for companies whose
recovery potential lies in their own hands, not those that rely on a
supportive economic background. He is not afraid …
Read the original article at Telegraph
