Research gives boon to team-managed approach in UK
Research suggests team-managed investments are boosting fund performance in the UK.
UK investment trust industry body the Association of Investment Companies (AIC) revealed 42% of its members, excluding venture capital trusts, take a team-based approach to portfolio management over single managers.
The most successful team-managed investment companies over the past year have tended to be smaller, with a commodities or other specialist sector focus, it said. Performance has followed a similar pattern to the wider investment company universe, it added.
Top performer of team-managed companies in the past year was Marwyn Value Investors, a global smaller companies investment firm, with performance up 83% and ranking as the AIC’s top performer overall.
Next, up 71%, was sector specialist City Natural Resources High Yield, a commodities and natural resources investment company. It was also the second top performing AIC member overall.
Aberforth Geared Capital & Income, offering capital shares of a split capital trust was up 62%, Strategic Equity Capital, a UK smaller companies investment company, was up 57%, and Greenwich Loan Income was up 51%.
The most enduring ranked investment trust was Value & Income, a UK growth and income company managed by Angela Lascelles and Matthew Oakeshott for the past 25 years, the AIC said.
During that time, a £100 investment into Value & Income has grown to £1,349 compared to an average of £962 for its peer group and £986 for the average investment company, added the AIC.