Research_strapline

Are you an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

Register for FundCalibre!

We just need to know
if you are an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

The best equity fund management groups risk-adjusted

20 February 2017

FundCalibre bases the main results of the index* on fund outperformance. However, we have also included some risk-adjusted data for investor interest.

FundCalibre's Fund Management Equity Index 2017:

  1. The top 10, results in brief
  2. What does the index tell us?
  3. More about the top five groups
  4. Risk-adjusted results (this page)
  5. Download the full list
  6. View the methodology

Top 10 fund groups – risk-adjusted

Rank 2017 Fund group % of funds outperforming ave. IA sector Sharpe No. of funds
1 River and Mercantile 100.00% 5
2 Stewart Investors 100.00% 10
3 Unicorn 100.00% 4
4 SVM 100.00% 5
5 Artemis 100.00% 10
6 Rathbone 100% 4
7 Premier 100% 7
8 Invesco Perpetual 83% 29
9 Schroders 79% 43
10 Baillie Gifford 75% 16



















Data source FE Analytics. All cumulative statistics % change bid to bid, net income reinvested, five years to 31/12/2016.
View the complete risk-adjusted list with all 77 fund groups

Why look at risk-adjusted returns?

Risk-adjusted performance is important, because if fund managers are taking more risk, you would expect them to achieve a higher return. This is definitely something to look out for with fund selection. Funds that are taking excessive risk but only delivering average returns may be ones to avoid.

In particular, funds with higher risk levels will probably perform badly during times of crisis. Funds that are less risky may perform better in times of crisis.

Our risk-adjusted index uses the Sharpe ratio. It is one of the most widely used metrics for measuring a fund's risk-adjusted performance.

Very simply, higher performance and a lower volatility gives a higher Sharpe ratio (meaning a better risk-adjusted investment).

We compared each fund's Sharpe ratio with their average Investment Association fund sector Sharpe ratio.

How do the risk-adjusted results differ?

Seven groups had 100% of their funds outperform over the past five years on a risk-adjusted basis: Artemis, Premier, Rathbone, River and Mercantile, Stewart Investors, SVM and Unicorn.

Of the larger groups (with ten or more qualifying funds), Artemis, Baillie Gifford, Invesco Perpetual, Schroders, Stewart Investors and T. Rowe Price all delivered risk-adjusted returns in more than 75% of their funds.

Other large groups that performed very well (between 65% to 75% of their funds outperforming) included Columbia Threadneedle, Fidelity, Henderson, JOHCM, Jupiter, Newton and Standard Life Investments.

*A bit about the main index

FundCalibre's Fund Management Equity Index looks at the majority of actively managed equity funds recognised by the Investment Association and compares them with their sector averages over a five year timeframe.

Each fund group's funds are then collected together to calculate the group's average fund performance. Fund groups must have a minimum of four qualifying funds to be included in the index.

Read more on the methodology

Go to the next page in this report (3/4)

IMPORTANT NOTICE
Past performance is not a reliable indicator of future returns. Please note the Fund Management Equity Index does not constitute investment advice. If you are in any doubt as to the suitability of any investment you should seek professional advice. An appearance of any fund on this index is not an indication it should be bought, sold or switched.

This is a purely statistical chart. All cumulative statistics % change bid to bid, net income reinvested, five years to 31/12/2016. Source FE Analytics. While every effort has been made to ensure the accuracy of this information, FundCalibre takes no responsibility for any errors, omissions or inaccuracies therein.