Tech: a must-have building block for your portfolio?
This week marks 34 years since the video game Tetris – one of the most widely-sold games in...
Our annual Fund Management Equity Index is designed to help investors identify those asset management companies that have consistently strong stock-picking fund managers, who are able to repeat their excellence year in, year out.
Morgan Stanley is a newcomer to the index and has entered straight in at the top. In previous years, its qualifying funds have been too few in number, but now that a few more funds have gained a five-year track record, their outperformance is clear to see. Its average fund returned 46.5% more than its peers over the five years to 31 December 2017*.
River and Mercantile, which was in the top spot last year, was pipped to the post and came in second. Its consistency was still impressive however: its average fund outperformed its peers by 37% over the period.
Indeed, consistency is a key highlight and one not to be sniffed at: eight out of last year’s top ten groups maintained their high standards of performance and retained their Elite Provider status this year. Even more impressive is the fact that five of these companies have been in the top ten in each of the past four annual surveys – a period of time spanning nine years of performance figures.
Particularly striking is the performance of a number of larger groups: 9 out of the top 20 companies have 10 or more funds and three of the top ten largest companies have been in the table each year since our survey began. Baillie Gifford, for example, which is in third place this year, has 15 eligible funds. 84.6% of these funds outperformed by an average 17% back in 2015. Today 93% have outperformed by an average 36.6%. That level of consistency and improvement is not to be sneezed at.
|Rank 2018||Rank 2017||Fund group||5yr ave. outperformance (%)||% of funds outperforming||No. of funds|
|1||New entry||Morgan Stanley||46.46||83.33||6|
|2||1||River & Mercantile||37.00||100||5|
|8||9||T. Rowe Price||26.05||92.31||13|