Fund Management Equity Index 2020

Morgan Stanley has completed a hat trick by claiming the number one spot in the FundCalibre Fund Management Equity Index for the third successive year.

Each year, FundCalibre’s research team identifies the asset management companies that have the most consistently strong stock-picking teams.

Looking back over the past five years, the analysis shows which companies have demonstrated they can add value for their equity investors year in, year out.

The result is the annual Fund Management Equity Index and the award for the ‘Elite Providers for Equities’ – now both in their sixth year.

Morgan Stanley makes it three years in a row at number one

Morgan Stanley remains top of the leader board, as its US and global franchises continue to significantly outperform their peers over five years. Its average fund returned 44.58%* more than its peers over the five years to 31 December 2019.

Ever-present in the top 10 in the past six years, Baillie Gifford has risen to second in the index with 14 of its 15 eligible funds outperforming across numerous parts of the globe. Its average fund outperformed its peers by 31.7%* over the period.

Having seen global stock markets sell-off at the end of 2018, few would have predicted 2019 would have been such a strong year for equities, with global returns in excess of 20%** and growth the dominant investment style once again. The top 10 companies consolidated their position with seven groups from 2019 re-appearing in 2020.

A decade of success

Two companies; Baillie Gifford and T. Rowe Price, have been among the top ten companies in each of the six annual surveys conducted. In second and fifth place respectively this year, this means that both asset management businesses have equity teams that have outperformed for a decade.

Both are also larger groups with 15 qualifying funds apeice. Maintaining such a level of consistency across that many products is extremely impressive.

Top ten fund groups 2020

Rank 2020Rank 2019Fund group5 yr. ave. outperformance% of funds outperformingNo. of funds
11Morgan Stanley44.58%83.33%6
23Baillie Gifford31.71%93.33%15
32Man GLG24.09%75%4
4New EntryWellington24.01%100%7
54T. Rowe Price22.67%86.66%15
637Unicorn19.98%100%4
77Comgest18.37%66.67%12
88Marlborough17.79%100%9
96Polar Capital16.31%66.67%9
1012Ardevora15.86%60%5

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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.