Research department measures Group's overall fund management capability
The consistency of some of the top fund management groups such as Fidelity has been thrown into sharp relief by group-weighted performance data calculated by The Research Department.
The data shows that, of the top 40 groups by assets under management, Fidelity is ranked among the top five overall group performers over the periods of two, three, four, five, six, seven, eight, nine and 10 years to 1 November 2001.
Over one year to that date, Fidelity had slipped to sixth position, with a £100 investment spread across the group's active funds having shrunk to £84.40 on an offer to bid basis with net income reinvested.
During that time period however, the average top 40 group would have reduced a £100 investment to £80. Over the 10 years, the £100 would have turned into £240.90.
The group weighted data is designed, according to the Research Department, to gauge the ability of a fund management group to manage assets expertly across its range over various spans of time.
It is calculated by creating a theoretical portfolio investing proportionately in funds according to the assets they contain. A fund making up 25% of a group's total active assets under management would make up 25% of this theoretical portfolio.
On this basis over the 10 year period, Fidelity is ranked third, behind BWD Rensburg in second place and Jupiter in first place with a £100 investment having grown to £388.90. Fidelity returned £320.90 and BWD some £330.50. However, BWD has a far smaller active fund range than either of the other two groups.
Fourth and fifth places over the 10 year period are held by Deutsche and Invesco Perpetual respectively. These are ranked 13 and nine over five years and 35 and 26 over one.
Jupiter is ranked first among the top 40 groups over the 10, nine, eight, seven, six and five year periods, after which it manages third place over four, three and two years. Over the one year period, it is ranked 11.
Other consistent performers in recent times are Newton, which is ranked in the top 10 in eight of the periods covered in the data, and HSBC, which is ranked in the top 10 over the one, two, four, five and six-year periods.
Over the past year, the top five positions are occupied by Woolwich Fund Managers, Norwich Union, Barclays, Newton and HSBC. Woolwich preserved capital best across its range during the past year with a £100 investment having shrunk to £88.40.
The larger groups fared less well in rankings involving all unit trust and Oeic groups, rather than just the top 40. Smaller groups and boutiques reliant on fewer funds and with less restrictive benchmarking are able to claim places in the top 10 consistently.
The top manager over 10 years in the total group weighted data is ABN Amro. However, the less familiar names of Discretionary Managers and Aberforth occupy places in the top five.
Over 10 years, Jupiter is ranked three in these rankings and Fidelity is nine.
Amongst the 40 largest groups the best overall performers over the past three years to 1 November are Fidelity, BWD, Jupiter, Schroders and Clerical Medical.
The worst performing of the top 40 groups over the past 10 years are Scottish Amicable, Standard Life and Legal & General. Over the past year they are Hendersons, Barings and Friends Provident.
Looking only at UK funds, Jupiter has the strongest record of the large groups over 10, nine, eight, seven, six and five years. Its 10-year performance of turning £100 into £469.30 is impressive even against second place BWD with £330.50.
Over three years, the best UK performers are Invesco Perpetual, Fidelity, BWD, Schroders and Clerical Medical.
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