Manager continuity key to consistent trust outperformance

Added 27th July 2016

Research by the UK's Association of Investment Companies (AIC) has found a correlation between fund manager longevity and fund performance.

Manager continuity key to consistent trust outperformance

Two-thirds of the AIC’s 20 outperforming “Olympian investment companies” have had the same fund manager presiding over activities for at least a decade, according to the report. 

Of the funds occupying the top five slots of the AIC’s list, three fulfil the fund manager longevity criteria. The same goes for the top 10 players.

It is also true of JP Morgan American, the ‘gold medallist’. Jointly managed by Garrett Fish and Eytan Shapiro for the last 14 and 11 years, respectively, AIC’s data showed the fund outperformed the average investment company eight out of ten times with the lowest levels of volatility. 

Regional gains

The AIC’s results also revealed a clear bias toward investment companies with an Asia Pacific excluding Japan and UK sector focus.

Five of the top 20 investment companies of the past decade hailed from the Asia Pacific excluding Japan sector, including the second and third most consistent performers of the decade, Invesco Asia and Schroder Oriental Income, respectively.  

A total of six UK investment companies made the grade as well, half of them (Finsbury Growth & Income, Perpetual Income & Growth and Edinburgh Investment Trust) from the UK Equity Income sector. 

Sector specifics aside, Invesco Asset Management dominated the top 20 list with four funds featured. JP Morgan Asset Management was a close second with three investment companies included. 

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