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The best equity fund management groups

20 February 2017

River and Mercantile claims top spot

River and Mercantile, one of last year's biggest gainers, continued its rapid climb upwards, leap-frogging four other companies into the top spot of FundCalibre's Fund Management Equity Index 2017. Its average fund outperformed its peers by 51.3% over the five years to 31 December 2016*.

Nine out of last year's top ten groups maintained their high standards of consistency and retain their Elite Provider status this year.

Particularly impressive is the performance of a number of larger groups: 11 out of the top 20 companies have 10 or more funds. Schroders, for example, has 43 qualifying equity funds, 88% of which have outperformed their peers over five years.

This year, we have included specialist equity funds such as those investing in single country or single sectors. This means that the results of the top performers are even stronger, and a number of newcomers have entered the table.

FundCalibre's Fund Management Equity Index 2017:

  1. The top 10, results in brief (this page)
  2. What does the index tell us? (this page)
  3. More about the top five groups
  4. Risk-adjusted results
  5. Download the full list
  6. View the methodology

Top 10 fund groups

Rank 2017 Rank 2016 Fund group 5 yr ave. outperformance % of funds outperforming No. of funds
1 5 River and Mercantile 51.33% 100.00% 5
2 2 Stewart Investors 33.14% 100.00% 10
3 1 Unicorn 32.02% 100% 4
4 10 Baillie Gifford 25.58% 95% 16
5 3 Old Mutual Global Investors 25.41% 67% 24
6 9 SVM 25.02% 100% 5
7 17 Man GLG 24.45% 50% 4
8 7 Artemis 21.59% 100.00% 10
9 4 T. Rowe Price 21.25% 83% 12
10 13 Marlborough 20.85% 75% 8



















Data source FE Analytics. All cumulative statistics % change bid to bid, net income reinvested, five years to 31/12/2016.
Download the full list

What does the index tell us?

We often forget that the asset management industry is one of this country's strongest sectors. The consistent outperformance, shown in this index, of many of the UK's top fund groups over the past five years is outstanding. As ever, the index also demonstrates the huge difference in performance between the best and worst groups.

  • The average fund's outperformance from the top group, River & Mercantile, was 68% higher than the average fund's results from the bottom group.
  • Consistently good active management is not a myth – nine out of last year's top ten groups retained their Elite Provider status this year, and six groups have held top ten places in the index in each of the past three years.
  • It's not just the boutique firms with a small number of funds doing well - some of the bigger global asset management companies have proven that they can produce the goods over a large number of funds.
  • This consistently suggests a high degree of skill among these companies' fund management teams.
  • Groups with more of a 'value' bias in their investment process, which have struggled in the past few years, have had a particularly strong 12 months, as their style of investing has started to come back into favour. JOHCM and M&G are such companies and are among the biggest risers.
  • Those groups that specialise in asset management continue to typically perform better than those whose businesses span a range of financial sectors.

Fund group highlights

As was the case last year, some fund groups delivered outperformance across all, or the majority of, their funds, while other fund groups saw a lower percentage of their total funds outperform.

This means that in some cases, fund groups' average performance was significantly assisted by particularly strong performance among a few of their funds, for example Man GLG with its Continental European Growth fund and Old Mutual Global Investors with its UK Dynamic fund.

Particularly impressive is the performance of a number of larger groups: 11 out of the top 20 companies have more than 10 funds and nine of these companies had more than 70% of their equity funds outperforming. Schroders, for example, has 43 qualifying equity funds, 88% of which have outperformed their peers over five years. Fidelity has 38 qualifying funds, 74% of which have outperformed over the same period.

Read more fund group highlights

*A bit about the index

FundCalibre's Fund Management Equity Index looks at the majority of actively managed equity funds recognised by the Investment Association and compares them with their sector averages over a five year timeframe.

Each fund group's funds are then collected together to calculate the group's average fund performance. Fund groups must have a minimum of four qualifying funds to be included in the index.

Read more on the methodology

Go to the next page in this report (1/4)

IMPORTANT NOTICE
Past performance is not a reliable indicator of future returns. Please note the Fund Management Equity Index does not constitute investment advice. If you are in any doubt as to the suitability of any investment you should seek professional advice. An appearance of any fund on this index is not an indication it should be bought, sold or switched.

This is a purely statistical chart. All cumulative statistics % change bid to bid, net income reinvested, five years to 31/12/2016. Source FE Analytics. While every effort has been made to ensure the accuracy of this information, FundCalibre takes no responsibility for any errors, omissions or inaccuracies therein.