Yodelar Investor Magazine May 2019

IN FOCUS

FUNDSMITH REVIEW

Almost a decade ago Fundsmith founder Terry Smith said asset managers had grown “fat and complacent” and the fund management industry was ripe for a shake-up. “Most are dire” is how he described the funds on offer to UK investors and that the “gullible analysts” and fund managers who run them simply aren’t up to the job .

In 2010, Terry Smith launched his Fundsmith investment company, which he said would provide investors with superior investment products. Nine years on, has he managed to deliver? In this report we analyse the performance of his 3 funds, their underlying holdings and how they each compare to their rivals.

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IN FOCUS INCLUDES

The 1mth, 3mth, 6mth & 1, 3 & 5-year performance and sector rank for each Fundsmith fund.
Factsheets including asset allocation and underlying holdings for each Fundsmith fund.
Fundsmith Equity fund performance comparison with 10 popular competing funds.

FUND MANAGER LEAGUE TABLE

For our league table, we carried out an extensive performance analysis of 99 fund management firms and the 2,559 sector classified unit trust funds and investment Trusts under their management. We then ranked each fund manager based on the percentage of funds they manage that have received a 4 or 5-star Yodelar performance rating.

Funds with a 1 or 2-star rating have a history of poor performance by consistently delivering returns that are below the sector average and worse than 50% of their peers. Whereas the funds with a 4/5-star rating have continually delivered returns that have outperformed the majority of their competitors.

INVESCO REVIEW

Invesco provides investors with access to 49 unit trust and OEIC funds that incorporate an ever-widening range of investment styles, asset classes and geographies. Combined these 49 funds hold £48.3 billion of client money.

In this report, we analyse the performance and sector ranking for all 49 funds comparing each to competing same sector funds over the recent 1, 3 & 5 year period up to 1st May 2019.

Our analysis identified significant underperformance from a large proportion of Invesco funds. 81.6% of their unit trust funds performed worse than 50% or more of competing funds over the last 12 months.

BEST UK EQUITY FUNDS

£11.9 billion has been withdrawn from UK Equity funds since the Brexit vote in June 2016, and this figure continues to rise with the investment association reporting withdrawals of £816 million in the first quarter of 2019. Despite the lack of investor confidence, UK Equities remain an integral part of a diversified portfolio. But how have UK Equity sectors performed compared to other markets, and which of their funds have performed the best?

In this report, we reviewed 395 UK Equity funds, analysing their performance and sector ranking over the recent 1 month, 3 months, 6 months, 1 year, 3 years and 5 years and we feature 10 funds that have consistently outperformed at least 75% of their peers over each of the 6 periods.

Monthly Top Fund Reports

Access our monthly top fund reports and fund manager league tables. Identify the funds and fund managers that consistently perform better than their peers across all investment sectors.

Top Performing Portfolios

6 risk based portfolios researched and developed by our in-house research team. Includes hand-picked funds that have consistently out performed all other same sector funds.

Fund Manager Reviews

Detailed fund information, charges, performance and ranking statistics for your favourite fund managers. Find out which fund managers are performing better producing better value for investors.

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