Will the faceless fund supplant the household name?

The household name fund manager stems from recognisable individuals likes Benjamin Graham, Sir John Templeton and Peter Lynch.

In the US they often acquire a bizarre or magical quality that secures them ‘wizard’ status. The obvious example is ‘Sage of Omaha’ Warren Buffett.

Franklin Templeton’s bald-headed bond villain Mark Mobius is also up there, as is ‘bond king’ Pimco founder Bill Gross, the purveyor of strange investor updates.

It’s the first fund I can think of that has achieved this fame without a big-name individual behind it, and best of all it’s a global mandate. John Kenchington

In the UK our household names have tended to be famed for a sort of ‘heroic contrarianism’, the idea they went against the herd to avoid pitfalls and seize opportunities.

Fidelity’s ‘quiet assassin’ Anthony Bolton avoided the collapse of the tech bubble. But after a failed bid to set up as a China fund manager, he has now officially retired.

You had Philip Gibbs, who I’d dub the ‘macro king’ after he dodged multiple financial crises – also now retired.

Bill Mott found fame in his time at Credit Suisse because he was another of the small handful of fund managers to avoid the tech bubble.

But now he’s going, who do we have left?

Neil Woodford, who also gained fame by avoiding tech, has just carried out the biggest retail fund launch in UK history. But his domestic focus may limit his broader appeal, in an age where fund managers are trading across borders and investors are taking a global approach.

We do have Asia stars Hugh Young, of Aberdeen, and Angus Tulloch, of First State, but their most desirable products are limited in size due to market liquidity.

Our biggest fund manager by assets is Richard Woolnough, whose M&G Optimal Income fund is indeed selling globally, but his focus on UK bonds may prove a little too niche for world domination.

Perhaps it’s time for us to change the ‘household name’ paradigm altogether, allowing it to include funds that are actually faceless.

With its Global Absolute Return Strategies (Gars) fund, Standard Life Investments has created a new kind of household name.

It’s the first fund I can think of that has achieved this fame without a big-name individual behind it, and best of all it’s a global mandate.

As other groups continue to line up their own Gars beaters, I wonder if these team-based, sophisticated retail products are the best hopes for the UK’s ability to retain its global edge.

John Kenchington is editor of Investment Adviser