Investment company Olympians

Whilst fund managers and Olympic athletes do not have an awful lot in common, it nevertheless takes endurance to consistently outperform the wider market year in, year out. The AIC looks at the most consistent outperformers of the decade

Investment company Olympians

The AIC ranked its members by discrete calendar years and benchmarked outperformance against the overall average investment company. Where two companies had the same consistency score, volatility of returns (standard deviation) was used to differentiate between them.

The Asia Pacific: Excluding Japan sector dominates, with five companies in this sector featuring in the top 20 most consistent performers. Two of these are the second and third most consistent performers of the decade, Invesco Asia and Schroder Oriental Income respectively.

But the UK sectors also take much of the glory: three of the top 20 most consistent investment companies are in the UK Equity Income sectornamely Finsbury Growth & Income, Perpetual Income & Growth and Edinburgh Investment Trust, with the latter two each managed by Mark Barnett. Another company came from the UK All Companies sector (Mercantile), with the UK Smaller Companies sector also featuring (Invesco Perpetual UK Smaller Companies).

The Global sector also has three companies featuring in the most consistent outperformers of the decade. F&C Global Smaller Companies is in fourth place and Scottish Mortgage and Independent Investment Trust both feature in the top 20.

Invesco Asset Management has the most investment companies in the top twenty, namely four, followed by JP Morgan Asset Management with three investment companies in the top twenty.

Fund manager consistency

Two thirds of the top 20 most consistent outperforming investment companies have had the same manager at the helm for at least 10 years, suggesting there may be a relationship between fund manager longevity and fund consistency.  This includes the top most consistent outperforming investment company of the decade, JP Morgan American, co-managed by Garrett Fish for the last 14 years and Eytan Shapiro for the last 11 years. This company has outperformed the average investment company in 8 of the last 10 years with the lowest levels of volatility.

Annabel Brodie-Smith, communications director, AIC, said: “The most consistent outperforming investment companies of the decade are dominated by the UK and Asia Pacific (excluding Japan) sectors but there is a wide range of companies to choose from with twelve sectors featuring in the top twenty. Investors should bear in mind that they need a balanced portfolio to meet their investment objectives and if they have any concerns they should speak to a financial adviser.”

 

Top 20 most consistent outperforming investment companies of the last decade:

bigger chart

 

 

About Author