Discover the 25 top-performing UK fund managers
With various online brokers, including our sister website Interactive Investor, Neil Woodford’s CF Woodford Equity Income* - which is also one of Moneywise’s First 50 Funds for beginner investors - regularly tops the sales chart as the most-bought UK fund.
Investors are drawn to the fund due to the fact that the manager has earned his stripes in beating the stock market as well as a majority of fund rivals, over various business cycles, in his 25-year plus career.
But new research by broker TD Direct has placed Mr Woodford in 15th place in its Best of British fund league table, which reviews how fund managers in the three main Investment Association (IA) UK equity-focused sectors have performed over the past decade against their peers (defined as the fund sector average).
Mr Woodford has delivered an average return of 8% on an annual basis over the last 10 years to the end of 2016. On average the fund manager has beaten the average fund performer in the IA UK equity income sector by 2.6% each year.
In contrast, Mark Slater, manager of MFM Slater Growth, boasts an annualised average return of 12.6% over the past decade. It has beaten its rival funds in the IA's UK all companies sector by 7.2% on average each year.
Slater invests in smaller companies with unique business models and strong growth prospects, buying for the long term.
The other Moneywise First 50 Fund to appear in the list is AXA Framlington UK Select Opportunities* run by Nigel Thomas, which comes in at number 18.
‘People shouldn’t invest in an average manager’
Michelle McGrade, chief investment officer of TD Direct Investing, says: "There has been much criticism of active funds, with many saying that the average manager has failed to beat the benchmark. But what this means is that people shouldn't invest in an average manager.
"We analysed more than 400 UK funds looking for equity managers with a track record longer than 10 years, so ranking in the top 25 for 10-year performance is a great achievement - these managers really are the best of British."
The full table comprising all the 25 names that made the cut can be found below (click to enlarge):
* Member of Moneywise’s First 50 Funds
The term is interchangeable with stock exchange, and is a market that deals in securities where market forces determine the price of securities traded. Stockmarket can refer to a specific exchange in a specific country (such as the London Stock Exchange) or the combined global stockmarkets as a single entity. The first stockmarket was established in Amsterdam in 1602 and the first British stock exchange was founded in 1698.
An individual employed by an institution to manage an investment fund (unit trust, investment trust, pension fund or hedge fund) to meet pre-determined objectives (usually to generate capital growth or maximise income) in prescribed geographic areas or investment sectors (such as UK smaller companies, technology or commodities). The manager also carries the responsibility for general fund supervision, as well as monitoring the daily trading activity and also developing investment strategies to manage the risk profile of the fund.
A standard by which something is measured, usually the performance of investment funds against a specified index, such as the FTSE All-Share. Active fund managers look to outperform their benchmark index. Cautious fund managers aim to hold roughly the same proportion of each constituent as the benchmark, while a manager who deviates away from investing in the benchmark index’s constituents has a better chance of outperforming (or underperforming) the index.