The top 25 that make up our list have a combined average performance of 7.9% vs 5.4% for the FTSE All Share over a ten year period. Around 400 UK fund managers were analysed before we managed to identify who the top 25 are, and we found a new number one.
A new number one
We have returned this year with a robust methodology that lets us analyse each of the fund managers based on their skill over and above the return from the market – often referred to as their alpha.
Using such a methodology means that Mark Slater of MFM Slater Growth features on the list for the first time in top spot. Other notable names that investors might look for include Neil Woodford, Harry Nimmo, Richard Buxton and Alistair Mundy.
Aside from individual positions there were some interesting themes that emerged.
Quality comes to the fore
The two main themes were undoubtedly income and the rise in performance of small/mid cap fund managers. Recent economic factors will have aided those in the small/mid cap sector and income will be high on the agenda of a lot of people, given the current economic climate; evidenced by it’s strong performance.
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There was also, undoubtedly, a feeling of quality coming to the fore. The list includes a lot of veteran fund managers whose funds we’ve classified as core because they are the types of funds you would want at the centre of your portfolio. Their performance is all about the long term, they have their processes and they stick to them.
It was also good to see the number of sustainability and ethical funds creep up from two on the list last year to three this time around.
There’s lots of inspiration on the list so take a look at this year’s Best of British Fund Managers.
Remember that each fund is unique and hence exposed to different levels of risk. Some are relatively low risk, whilst others can be very risky and those will only be appropriate for more sophisticated investors.
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