The company’s multi-manager balanced and income trusts produced first-quartile performance net of fees in the 12 months since launch in April 2008 according to Lipper, while the growth fund achieved a second-quartile ranking. The funds were up 4.8, 9.1 and 3.7 per cent respectively against their benchmarks.
Co-fund manager Alan Thein regards this as a respectable start during a difficult period for fund managers. He believes that hard work on the research side, not chasing the market and backing quality managers over the long term will enable L&G’s funds to build a strong track record. Managers such as Invesco Perpetual’s Neil Woodford, Steven Morant of Morant Wright, M&G’s Richard Woolnough and Philip Gibbs of Jupiter will continue to feature in the portfolios.
Thein says: “The last 12 months have shown that if we had tried to chase the market we would have got carried out. Last May and June we thought equities looked good value, but the gilt story was crazy. We benefited from our belief in the gilts market, which added quite a bit to performance.”