Fidelity International has emerged as the fund group with the greatest number of Alpha Managers – those that have added the most value for investors during the course of their career – in the latest rebalance of the rating by FE fundinfo. 
The list is made up of the top 10 per cent of UK retail-facing managers based on entire career performance. FE fundinfo considers a manager’s ability to create risk-adjusted alpha, outperformance in both rising and falling markets, and those who consistently beat their benchmarks.
“Over the past year, the benefits of active management have increasingly come under the spotlight, as passive investing continues to attract significant inflows during one of the largest bull runs in history,” said Charles Younes (pictured), research manager at FE fundinfo.
“However, active management remains a vital component of any successful investment proposition, particularly in more challenging economic environments.”
Following the 2020 rebalance, Fidelity International was revealed as the group with the most Alpha Managers, replacing BlackRock at the top.
Source: FE fundinfo
Fidelity had 11 to BlackRocks’s eight (down from 10 in 2019), having added two new Alpha Managers over the past 12 months: Alex Duffy and Aruna Karunathilake. Comgest, GAM and Polar Capital each had six Alpha Managers, while First State Investments and T. Rowe Price had five apiece.
Younes said the fact that Fidelity had so many Alpha Managers across a range of sectors meant there was probably more than one driver behind their success.
“Rather it’s their environment and support teams which provide excellent feedback to the fund managers,” he explained. “Fund managers will be provided with clear and accurate information which allows them to concentrate on managing money in line with their mandates.”
In total there were 55 new managers added to the Alpha Manager rankings, including Welling Management equity portfolio manager John Boselli who topped this year’s list.
Boselli manages the Wellington Global Quality Growth fund, which has returned 63.83 per cent over the past three years compared with a 22.95 per cent gain for the average IA Global peer.
Performance of fund vs sector over three years to end-2019
Source: FE Analytics
Another notable addition to the list is Colombia Threadneedle’s Alex Lyle, who oversees 13 funds, and Investec Asset Management’s Philip Saunders, manager of nine funds across the IA Flexible Investment and IA Specialist sectors.
Retirement, fund closure and underperformance were among the main themes among those leaving the Alpha Manager list this year.
But one of the highest-profile casualties was Neil Woodford, whose LF Woodford Equity Income fund was suspended last year amid outflows, poor performance and liquidity concerns. Having enjoyed a long and successful career in the industry, Woodford saw his flagship fund wound up and other mandates picked up by rival firms.
The sector with the most Alpha Manager was IA Global with 39 in total, followed by IA UK All Companies with 33.
“US equities have consistently outperformed other asset classes, despite their rich valuation,” Younes explained. “While they are expensive, those managers that look beyond valuation and concentrate on other factors have enjoyed positive performances, and we have seen a high number of Alpha Managers operating within the IA Global sector.”