European fund managers have moved to a more growth-oriented style, according to research from asset ...
European fund managers have moved to a more growth-oriented style, according to research from asset management technology provider SEI Investments.
The group also found that 60% of actively managed UK Funds are hugging the FTSE All-Share Index.
SEI measured the style bias of 518 funds in the Lipper UK unit trust universe against the style bias of the FTSE All-Share Index over a four year period ending September 2002. Based on this comparison, over half of the funds fail to deviate significantly from the style bias of the FTSE All-Share Index, said Mark McCarron, director of manager research at SEI.
After examining two four-year periods to September 1999 and September 2002, SEI also concluded the investment style of a fund is more important to generation of returns than the ability of the manager. The success claimed by many managers in the late 1990s was related more to their investment style than a skill in making better investment decisions than their peers, McCarron said. He added when value stocks recovered from 2002 many managers who were previously successful found it hard to demonstrate their competence.
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