Henderson suffers in latest FE Alpha Manager rebalance

Schroders and Fidelity International have seen the largest number of funds make the FE Alpha Managers list in its 2017 rebalance, while Henderson Global Investors saw its number of funds in the list halve to five from 10 in last year’s list.

In total 193 managers have scooped an Alpha rating with new additions including Wise Investment’s Hugh Yarrow, Odey Asset Management’s James Hanbury and Andrew Jackson, who replaced star fund managers George Godber and Georgina Hamilton on the UK Value Opportunities fund.

The quant analysis recognises the top 10 per cent of UK retail-facing managers on their track records going back to 2000, with extra weighting for managers with the longest track records.

While 56 new Alpha managers were added to the list, 40 of which have never previously been included, 38 managers lost their Alpha rating.

The fund managers with the largest assets under management to drop from the list include Edouard Carmignac of the eponymous fund house, Blackrock’s Scott Thiel, Axa Investment Management’s Nigel Thomas, Henderson’s John Bennett and Nick Price of Fidelity International.

UK equity managers led the pack with 34 per cent of IA UK Smaller Companies funds run by Alpha managers, while the UK Equity Income and UK All Companies sectors have 20 per cent and 19 per cent respectively making the list.

Mika-John Southworth, director at FE, says on average UK Smaller Companies managers have returned 40 per cent more than the FTSE All Share over five years “more than justifying their fees”.

Southworth says the analysis aims to remove short-term market movements or cyclical factors.

“The ratings assess performance throughout a manager’s entire career, across all the funds they have managed, and are specifically designed to reward skill, consistency, alpha generation and downside protection,” he says.