FE announces 2012 class of Alpha Managers
FE has unveiled its list of FE Alpha Managers for 2012, with 160 portfolio managers achieving the rating, which identifies them as among the top 10% of managers of UK Investment Management Association unit trusts and open ended investment companies (OEICs).
One third of the 2012 FE Alpha Managers (53) have received this designation every year since the ratings were launched in early 2009. They include four managers apiece from Jupiter Unit Trust Managers and Schroders, and three each from Henderson Global Investors, M&G and Newton Investment Management.
These managers have, according to the rating, proved their ability to add Alpha consistently over the long-term, in both rising and falling markets.
FE scores managers on three components: risk-adjusted alpha; outperformance of their benchmark; and the consistency of outperformance or underperformance in all market conditions. Managers are judged on their track records from 1 January 2000 to 31 December 2011, regardless of how many investment houses they have worked for. The only stipulation is that they must have a minimum track record of 30 months to be rated. The top 10% of portfolio managers are then awarded FE Alpha Manager status in recognition of their investment excellence.
For the first time this year, managers of funds in the IMA universe that are not UK domiciled have been included, resulting in a longer list of 160 names compared to last year’s 113. For eligible managers, the performance of all investment trusts and international funds they run, even if they fall outside the IMA universe, was taken into account.
Over three years to 31 December 2011 the two best performing funds managed by an FE Alpha Manager were both small-cap strategies run by Deryck Noble-Nesbitt, who is new to the list this year. His Close Special Situations fund returned 267.9% while Close Beacon Investment rose 205.7% in sterling terms. Both funds have a five FE Crown Fund Rating – the top score. Over five years, the best performer was Crispin Odey’s Odey European, up 126.0%.