Investments  

Schroders and Henderson head the pack

Schroders and Henderson Global Investors have emerged as the big winners in the annual Investment Adviser 100 Club update, with both groups picking up a flurry of memberships.

The Investment Adviser 100 Club is an annually reviewed selection of the best funds and providers available to UK retail investors. Memberships are awarded to products that have enjoyed a stellar 12 months on top of solid long-term returns.

In the latest membership list, revealed today, Schroders has rocketed from having one entry to 12 after enjoying a return to outperformance across its equity fund range.

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The group’s member funds include four Cazenove Capital funds that have now been taken over by Schroders in its buyout of the boutique asset manager.

Henderson Global Investors has gone from having two member funds to eight – the second-largest member count after Schroders – thanks to club debuts from a series of the group’s established fund managers.

Both asset managers have been awarded membership of the coveted Large Investment Group category, along with JPMorgan Asset Management, Invesco Perpetual and Aberdeen Asset Management.

To gain membership of the Investment Adviser 100 Club, funds have to demonstrate a high level of 12-month outperformance of a relevant benchmark while also reporting outperformance in the past five years.

The funds also have to pass an exhaustive screening test to ensure they are relevant to advisers, including minimum fund sizes and distribution requirements. In a new development this year, funds that are soft-closed to discourage new investments have been screened out to ensure the club is relevant to fund selectors.

The Cazenove funds that have made it into the Investment Adviser 100 Club 2013 include the UK Opportunities fund run by star UK equity fund manager Julie Dean; this is her second appearance in the elite 100.

The fund, now £1.8bn in size, gained 39.2 per cent in the year to June 30 in total return terms, representing 21.2 per cent of outperformance of the FTSE All-Share index in just 12 months. In the past five years the fund has gained 129.5 per cent.

This year’s most prolific boutiques, in terms of Investment Adviser 100 Club member funds, include repeat member Baillie Gifford and new entrants Kames Capital and Frostrow Capital.

Baillie Gifford’s four club member funds range from Japanese large and small-caps to corporate bonds and European equities, signalling a multi-year, broad-based spell of outperformance for the group.

Two of Kames Capital’s funds have made the club, including its Investment Grade Bond fund, run by Euan McNeil, who was joined by high-profile former Old Mutual fund manager Stephen Snowden as co-manager in September 2011.

The groups join J O Hambro Capital Management and Lindsell Train, another previous member, in this year’s Investment Boutique category.

The Investment Adviser 100 Club is a fully RDR-ready proposition, enabling investments trusts to compete with open-ended funds. It also makes room for a Passive Investment Groups category.

To discover the full details of the Investment Adviser 100 Club member funds, visit the microsite at www.FTAdviser.com/IA100.