Our research shows that a select few have proven their worth over that time, providing annual returns above that of the FTSE 100 through two decades of turbulence.
Only 167 funds in the entire IMA universe have a track record of two decades and only seven have had the same manager for that time.
Five of the seven have beaten the FTSE on a total return basis over the 20-year period. With the exception of Mumford’s Cavendish Opportunities fund, all are headed up by FE Alpha Managers.
Performance of funds and index over 20yrs
| Name | Manager | Total return (%) |
|---|---|---|
| GAM UK Diversified |
Andrew C Green |
956.53 |
| Invesco Perp High Income |
Neil Woodford |
839.78 |
| Cavendish Opportunities | Paul Mumford | 729.81 |
| GAM Global Diversified | Andrew C Green | 702.72 |
| GAM North American Growth | Gordon Grender | 577.99 |
| FTSE 100 | 345.09 | |
| Margetts International Strategy | Toby Ricketts | 298.31 |
| Ecclesiastical Amity UK | Sue Round | 207.51 |
Source: FE Analytics
The study did not include funds that are run by teams, such as those run by Aberdeen.
GAM UK Diversified has the best record of the five, delivering returns of 956.53 per cent over the period. By contrast, the FTSE 100 has returned 345.09 per cent.
FE Alpha Manager Andrew C Green has run the £140.7m fund since it launched in August 1990, following two decades of managing private client portfolios.
The average annualised return of GAM UK Diversified over the 20-year period is 12.51 per cent, according to FE Analytics data, while the figure for the FTSE 100 is 7.72 per cent.
It also tops the list for risk-adjusted returns, using the Sharpe ratio. It has a score of 0.6 over the period, just beating Invesco Perpetual High Income.
Green has also run the GAM Global Diversified fund for the whole period in question, returning 702.72 per cent overall. He is the only manager to appear in the study twice. Woodford’s (pictured) Invesco Perpetual High Income – which is set to celebrate its 25-year anniversary later on this week – has comfortably beaten its FTSE All Share benchmark over the period.
His Invesco Perpetual Income portfolio has most probably also beaten it over 20 years, but we only have data for it going back to 1995.
Woodford’s returns have been unexceptional over the past couple of years, and the manager's Invesco Perpetual Income and High Income funds are bottom quartile over the past 12 months.
However, he more than proves his worth in the long-run.
Invesco Perpetual High Income has made 839.78 per cent over the past two decades, second only to GAM UK Diversified.
Performance of fund vs sector and index over 20-yrs
Source: FE Analytics
Mumford’s Cavendish Opportunities portfolio is still just £71.5m in size, even though it has been one of the best-performing UK funds of the last 20 years – and has had the same manager at the helm throughout.
The small cap focused fund is up 729.81 per cent over the period, more than doubling the returns of the FTSE 100. It has also comfortably beaten its FTSE Small Cap (ex ITs) benchmark over the period, which has returned 268.84 per cent.
Performance of fund vs sector and index over 20-yrs
Source: FE Analytics
Gordon Grender has run the GAM North American Growth fund since 1985. He has led it to the top of the IMA North American sector over 20 years, with returns of 577.99 per cent.
The only two managers that have run the same fund for the last 20 years but have failed to beat the FTSE 100 are FE Alpha Managers Sue Round and Toby Ricketts.
Ricketts’ Margetts International Strategy fund has returned 298.31 per cent over the period, while Round’s Ecclesiastical Amity UK fund has grown by 207.51 per cent.
While Margetts International Strategy has fallen short of the UK market, it has beaten its IMA Global sector average benchmark by almost 100 percentage points.
While Andy Brough has only run the Schroder UK Smaller Companies fund since 1994, he is still well worth a mention. Over the last 19 years or so it has delivered 615.68 per cent, second only to one fund on the list over the period – GAM UK Diversified.