Fund Management Equity Index 2018

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 straight in at number one

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.


Top ten fund groups 2018

Rank 2018Rank 2017Fund group5yr ave. outperformance (%)% of funds outperformingNo. of funds
1New entryMorgan Stanley46.4683.336
21River & Mercantile37.001005
34Baillie Gifford36.6093.3315
67Man GLG27.09754
75Old Mutual27.0256.5223
89T. Rowe Price26.0592.3113

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This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.