Fund managers that focus on the biggest, most stable companies in the UK are among the best performing over the last year, according to research released by TD Direct today.
The research listed the Lindsell Train UK Equity fund as the “runaway winner”, managed by Michael and Lindsell and Nick Train, for returns over the last year, returning 20.1 per cent compared to 1.2 per cent for the FTSE All Share.
TD Direct attributes the fund’s success to its high exposure to consumer staples.
It was followed by the JOHCM UK Opportunities fund, which returned 17.1 per cent, and the Artemis UK Special Situations fund, which returned 10.7 per cent over the period.
The research analysed the one-year returns of the UK’s 25 top performing managers, which was based on a 10-year track record.
The research found nine of these managers run “core funds”, focussed on the “biggest, most stable” companies in the country.
It described these managers as a “safe pair of hands”, which it considers particularly pertinent given the political and economic shocks the UK has faced over the period.
It says the Lindsell Train and JOHCM funds both fall in this category.
According to the research, the country’s other top core managers include: Alastair Mundy, who manages the Investec UK Special Situations fund; Richard Buxton, manager of Old Mutual UK Alpha; and Stephen Adams, of Kames UK Equity.
It says this group is market veterans who can stick with their process through market ups and downs.
Chief investment officer at TD Direct Investing Michelle McGrade says: “We know that when markets are unpredictable investors can get nervous, and at such times these are the kind of managers that investors may want to turn to. This type of fund will often sit at the heart of a balanced portfolio and they’re increasingly attractive to investors wanting to minimise risk.”