Thursday 27 February 2014

FE Alpha Managers

It's a fairly well documented fact that most actively managed funds under perform their passive, index tracking rivals (and charge investors extra for the privilege). 

However there are some managers out there who are well worth their proverbial salt, beating the market consistently over long time frames. Here are five such managers as demonstrated by the FE Alpha Managers list. Below are the current top five performers over a 10 year period, and the respective funds they manage.

1. Harry Nimmo - Standard Life UK Smaller Companies Trust PLC - 438.3%
2. Daniel Nickols - Old Mutual UK Smaller Companies PLC            - 384.1%
3. Martin Lau      - First State Greater China Growth                         - 337.5%
4. Nick Train      - CF Lindsell Train UK Equity                                 - 307.3%
5. David Dudding - Threadneedle European Select                            - 302.5%


Some of these outstanding returns are no doubt attributable to the fact that these funds rate higher than average on the risk spectrum: you would expect smaller company, and emerging market funds to generally outperform the market as payment for taking on the extra risk. It is of little surprise that no income funds made the top five.

Nonetheless these managers have all significantly outperformed their benchmark indexes and deserve consideration as part of the risky portion of an adventurous portfolio. Whilst past performance is no certain guide to the future, there is a reasonable chance that shrewd managers who have made good investment decisions will continue to do so going forward.

For more information on index trackers v managed funds check out the following link.


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