M&G and Invesco top 100 Club rankings

100 Club2022

The latest 100 Club of top UK funds has been published, with M&G and Invesco ending up with the greatest number of funds on the list.

The 100 Club data was compiled by FTAdviser’s sister publication, Asset Allocator, using a methodology that examined funds' track record over one and five years.

The data looked at total returns over one and five years relative to the most relevant benchmarks. Figures are quoted bid-to-bid and rebased to sterling where necessary. 

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Candidates are initially ranked on their one-year performance, then screened over the longer-term horizon.

To merit inclusion, a fund must have beaten the benchmark by 10 per cent or more over the five years to the end of June 2022. To be included, a fund is expected to have beaten the benchmark by at least 5 per cent on a one-year basis.

If, as in the turbulent year just gone, no fund can meet this criteria, the hurdle is narrowed to 8 per cent and 4 per cent, and so on, until the requisite number of funds is met. 

A fund is not included if it has underperformed its benchmark over either time period.

The first is the presence of fund houses with a clear tilt towards value, including Invesco and M&G - though both companies had a combination of bond and equity funds in the list. 

Judges named the £2bn Invesco Corporate Bond fund the winner in the sterling corporate bond category, while M&G Global Floating Rate High Yield won in the specialist bond category.

Of the 100 funds, Invesco was represented eight times, and M&G seven times, with both firms being selected by judges in the group of the year category. 

There were also selections from the judges on mid and small fund group of the year. 

The other trend was the lack of investment trusts which made the cut, as share price volatility took its toll.

It was only in one category where investment trusts had a strong representation: the mixed asset category.

Here volatility-managed type investment trusts were strong, with Capital Gearing, Ruffer and Personal Assets - vehicles that prioritise wealth preservation - making the cut. 

The list of funds in the Asset Allocator 100 Club, grouped by sector, and with full details of the methodology used, can be found here