Multi-managers reveal the top 10 overlooked funds
Big-name multi-managers have revealed the 10 strong-performing funds that they think are being overlooked by investors.
Five fund of funds managers have highlighted two funds each that they think are too small in terms of assets under management given their stellar investment performance.
The smallest fund on the list is the £12m CF Amanti UK Smaller Companies fund, which is managed by Amati Global Investors’ Paul Jourdan and Douglas Lawson.
Gary Potter, co-head of multi-manager at F&C Thames River, said the funds may be overlooked as many adviser firms will not consider sub-£500m funds.
“If you own the same assets as everyone else you will get the same return,” he said. “It doesn’t mean to say it’s wrong but in terms of adding value it has to be questioned.”
David Coombs, fund manager at Rathbone Unit Trust Management, said: “We do feel that the optimal performance tends to come prior to becoming a ‘superfund’.
“The sweet spot is between £100m and £1bn. I can’t say this is all the time but generally speaking once funds in less liquid markets go above that they could face problems.”
Alan Thein, co-manager on the Legal & General multi-manager funds, said he spends a “significant amount of time” considering capacity issues.
“We like firms to espouse and display a culture of performance first, asset gathering second,” he said.
“One way to test/monitor this over time is to see what capacity limits have been set for the firm’s various investment strategies, whether these are realistic and whether they are then adhered to.”
The 10 funds that multi-managers think are overlooked
• Alan Thein & Tim Gardner, Legal & General Investments
- First State Latin America
- Guinness Global Energy
• Gary Potter & Rob Burdett, F&C Thames River
- Chelverton UK Equity Income
- Cazenove UK Equity Income
• David Coombs, Rathbones
- Legg Mason US Equity Income
- Prusik Asian Equity Income
• Elliot Farley, T Bailey
- Polar Capital North American fund
- CF Amati UK Smaller Companies
• Jane Turner, Schroders
- Brown Brothers Harriman Core Select
- JO Hambro Emerging Markets