Best of British: the UK funds beating market volatility
The third quarter of 2015 was tumultuous for stock markets the world over, with many funds focused on larger caps seeing negative returns over the same period.
Small-cap funds seem to be largely immune to global macroeconomic events which have impacted their larger-cap counterparts, such as slowing growth in China, depressed oil prices and uncertainty over whether and when the US Federal Reserve will hike interest rates.
Among the funds rising above volatility are SLI UK Smaller Companies (managed by Harry Nimmo), Liontrust UK Smaller Companies (Anthony Cross & Julian Fosh), JPM UK Smaller Companies (Georgina Brittain), Old Mutual UK Smaller Companies (Daniel Nickols), Schroder UK Smaller Companies (Andy Brough & Rosemary Banyard) and CF Woodford Equity Income (Neil Woodford).
Source: Morningstar, correct as of 30th September. Total returns in GBP. N.B. The above chart only highlights performance over Q3 of 2015.
The chart below illustrates the top 25 British fund managers identified by TD Direct Investing.
|1||Harry Nimmo||SLI UK Smaller Companies Ret Acc|
|2||Daniel Nickols||Old Mutual UK Smaller Companies Acc|
|3||Michael Lindsell & Nick Train||CF Lindsell Train UK Equity Acc|
|4||Anthony Cross & Julian Fosh||Liontrust UK Smaller Companies Inc|
|5||James de Uphaugh & Chris Field||Majedie UK Equity A Acc|
|6||Richard Newbery & Alistair Whyte||Aberforth UK Small Companies Acc|
|7||Andy Brough & Rosemary Banyard||Schroder UK Smaller Companies A Inc|
|8||Richard Buxton||Old Mutual UK Alpha R Acc|
|9||Neil Woodford||CF Woodford Equity Income|
|10||Audrey Ryan||Kames Ethical Equity A Acc|
|11||Georgina Brittain||JPM UK Smaller Companies A Acc|
|12||Nigel Thomas||AXA Framlington UK Select Opps R Acc|
|13||Matt Hudson||Schroder UK Alpha Income A Inc|
|14||Mark Costar||JOHCM UK Growth B GBP|
|15||Lesley Duncan||SLI UK Ethical Ret Acc|
|16||Alistair Munday||Investec UK Special Situations A Inc Net|
|17||Adrian Frost & Adrian Gosden||Artemis Income Inc|
|18||Jan Luthman & Stephen Bailey||Liontrust Macro Equity Income|
|19||Andrew Green||GAM UK Diversified Acc|
|20||Derek Stuart||Artemis UK Special Situations R Acc|
|21||Carl Stick||Rathbone Income R Inc|
|22||Stephen Adams||Kames UK Equity E Acc|
|23||Karen Robertson||SLI UK Equity High Income Ret Inc|
|24||Jullian Chillingworth||Rathbone Blue Chip Income And Growth|
|25||Tom Dobell||M&G Recovery A Acc|
Michelle McGrade, chief investment officer at TD Direct Investing, said: “Short-term volatility needs to be placed in the context of a much longer timeframe. The managers of the Best of British list have demonstrated they can deliver for investors, albeit with some bumps in the road, depending on how market conditions affect their particular investment style.”
“A short-term downward move in returns represents a great opportunity to invest in contrarian funds such as Investec UK Special Situations, managed by Alistair Mundy, or GAM UK Diversified, which is run by Andrew Green, who is the longest-tenured manager on the top 25 British fund managers list. It’s also promising to see a higher number of women fund managers than the industry average, representing 20 per cent of the list,” she added.