The 20 most consistent investment trusts of the last decade identified by trade body the AIC

8th May 2013

The Association of Investment Companies has issued a note listing what it identifies as the 20 most consistently performing investment trusts of the last decade.

In a note issue this week, it says the UK Smaller Companies sector, closely followed by Asia Pacific excluding Japan, are dominating the league table as the most consistent and strongest performers of the last decade. Seven out of twenty of investment companies were from the UK Smaller Companies investment company sector, whilst five out of twenty were from the Asia Pacific excluding Japan sector. Fund manager Aberdeen manages six of the trusts.

Fund manager longevity

The AIC says the figures also suggest fund manager longevity may play a role in delivering strong, consistent performance.  During the last ten years, over half of the investment companies have had the same manager at the helm for at least a decade, with a number of other companies having the same manager for close to a decade. Harry Nimmo, for example, has managed Standard Life UK Smaller Companies for over 9 years, Bruce Stout has also managed Murray International for 9 years, and Peter Ewins has managed F&C Global Smaller Companies for the last 8 years.

Strongest and most consistent performers

Here is the AIC top three.

Scottish Oriental Smaller Companies, managed by Susie Rippingall for over a decade until her retirement on 1 April this year, now managed by Wee-Li Hee, Scott McNab and Angus Tulloch, is the strongest and most consistent AIC member investment company of the last decade.  Over the last decade, a £100 lump sum investment into the company has grown to £875 and it has outperformed the average investment company in nine of the last ten years.

The second top performing and most consistent  investment company of the last decade is from the Global Growth sector, and is F&C Global Smaller Companies, managed by Peter Ewins.  A £100 lump sum in the fund over the last decade has grown to £654, and the company has outperformed the average investment company in nine of the last ten years.

Aberdeen New Dawn is the third most consistent, strongly performing investment company of the last decade, also outperforming the average investment company over nine of the last ten years.  The company has been managed by Hugh Young since 1989 and a number of other managers are also managing the company.

Interestingly, of the twenty most consistent and strongly performing investment companies, nearly a third (6) are managed by Aberdeen Asset Managers.

Methodology

The AIC looked at the discrete annual returns every year for ten years across the investment company sector.  Each year the company’s performance was benchmarked against the overall average performance of the investment company industry and the companies that most consistently outperformed on an annual basis were identified.  Where two companies had the same consistency score, the volatility of the returns (standard deviation) was used to differentiate between them.

Annabel Brodie-Smith, Communications Director, Association of Investment Companies (AIC) says: “With markets back in ‘risk on’ mode, it’s worth pausing and remembering that consistency of performance can be more meaningful to investors than a one off ‘shoot the lights out’ success. Of course portfolio composition, charges, and a whole host of other factors also need to be taken into account.  It’s interesting to see that the Asia Pacific and UK Smaller Companies sectors have managed to combine consistency with spectacular gains. Perhaps it’s not surprising that some of these Asia Pacific funds also have a smaller companies focus.”

Company Sector Fund manager Fund manager length of service Number of times outperformed average investment company over each of last 10 years  Share price total return on £100 over 10 years to end February 2013 (£)
Scottish Oriental Smaller Companies Asia Pacific – Excluding Japan

Susie Rippingall to 1 April 2013 (now managed by Wee-Li Hee, Scott McNab and Angus Tulloch)

2000 – 01/04/2013

9

875.31

F&C Global Smaller Companies Global Growth

Peter Ewins

31/07/05 – present

9

654.00

Aberdeen New Dawn Asia Pacific – Excluding Japan

Hugh Young

Flavia Cheong

Adrian Lim

Andrew Gillan

Christopher Wong

02/05/1989-present

01/08/1996 – present)

01/05/2000 – present

01/12/2000 – present

01/01/2001 – present

9

626.72

Aberdeen Asian Smaller Companies Asia Pacific – Excluding Japan

Chou Chong

Andrew Gillan

Flavia Cheong

Christopher Wong

Adrian Lim

1/10/1995 – present

1/10/1995 – present

1/10/1995 – present

19/10/1995 – present

19/10/1995 – present

8

1062.80

Jupiter European Opportunities Europe

Alexander Darwall

20/11/2000 – present

8

729.56

Dunedin Smaller Companies UK Smaller Companies

Ed Beal

17/01/2006 – present

8

481.84

Genesis Emerging Markets Global Emerging Markets

Team Managed

8

721.42

Finsbury Growth & Income UK Growth & Income

Nick Train

11/12/2000 – present

8

499.83

HgCapital Private Equity

Nic Humphries

01/01/2001 – present

8

646.86

MontanaroUK Smaller Companies UK Smaller Companies

David Lindley

George Cooke

01/07/2012 – present

01/07/2012 – present

8

516.08

Aberdeen New Thai Country Specialists: Asia Pacific

Chou Chong

Flavia Cheong

Adrian Lim

Andrew Gillan

AdithepVanabriksha

OrsenKarnburisudthi

01/12/1994 – present

01/12/1996 – present

01/12/2000 – present

01/12/2001 – present

01/12/2002 – present

01/12/2006 – present

7

1195.76

Edinburgh Dragon Asia Pacific – Excluding Japan           Adrian LimFlavia Cheong

Andrew Gillan

Chou Chong

Christopher Wong

31/08/2007 –  present

     31/08/2007 – present

31/08/2007 – present

31/08/2010 – present

31/08/2010 – present

7

601.15

Standard Life UK Smaller Companies UK Smaller Companies

Harry Nimmo

01/09/2003 – present

7

831.39

Henderson Smaller Companies UK Smaller Companies

Neil Hermon

01/11/2002 – present

7

627.57

JPMorgan Smaller Companies UK Smaller Companies

GeorginaBrittain

02/01/1998 – present

7

539.92

Schroder AsiaPacific Asia Pacific – Excluding Japan

Matthew Dobbs

20/11/1995 – present

7

551.69

BlackRock Smaller Companies UK Smaller Companies

Mike Prentis

30/09/2002

7

671.70

European Assets European Smaller Companies

Sam Cosh

David Moss

20/10/2011

20/10/2011

7

563.06

Invesco Perpetual UK Smaller Companies UK Smaller Companies

Richard Smith

Jonathan Brown

06/2002 – present

05/2010 – present

7

488.70

Murray International Global Growth & Income

Bruce Stout

16/06/2004 – present

7

557.81

Investment company overall weighted average

309.20

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