Threadneedle biggest outperformer, Fund Strategy study reveals

Threadneedle is the biggest provider of onshore funds that have outperformed their benchmarks and cash savings over five years, according to a study by Fund Strategy.

The study, which analysed FE Trustnet data to October 25, showed that only 18% of funds outperformed the typical benchmark indices for their peer groups as well as the 12-month sterling London Inter-Bank Bid (Libid) or deposit rate, a proxy for a cash savings account.

The investigation aimed to demonstrate the difficulty savers have in allocating to funds that meet their target of outperforming their benchmark indi­ces as well as cash alternatives.

Threadneedle, a division of Ameriprise Financial, a former** subsidiary of American Express , came out on top with 19 funds out of a total of 254, or almost 8%. (article continues below)

In second place was BNY Mellon Asset Management, another American player, with 12 funds, or nearly 5%.

M&G Investments, the investment manager of Prudential, was in third position, with 10 funds, or roughly 4%.

BlackRock, Henderson and Jupiter contributed eight funds each to the total, meaning that the six companies between them have cornered a quarter of the selection.

Each of the six groups is among Brit­ain’s top 20 in terms of overall funds under management.

Of the largest 10 fund managers in Britain, the only player with no funds on the list was HBOS Investment Fund Managers. The next lowest on the list was Legal & General, Britain’s eighth-largest fund group, with just one portfolio.

The list excludes cases in which the named provider acts primarily as an authorised corporate ­director or administrator on a fund.

** Nov 15 correction. Ameriprise Financial is a former subsidiary of American Express.