Investment Week and Morningstar's latest look at the most consistent fund managers across the unit trust and OEIC universe.
This week's data covers the three years to 17 January 2019.
Yu Zhang's Matthews Asia Funds China Dividend fund has retained its position at the top in the first Consistent 50 of 2019. The fund has been in the top spot for seven consecutive weeks and is £11m in size, the smallest fund on the table.
In second place was the £144m MI Hawksmoor Distribution fund, managed by Daniel Lockyer, while Ken Wotton's £164m LF Gresham House UK Micro Cap rose from fifth to third position.
Completing the top five was Eddie Chow's £327m Templeton China fund and Nicholas Williams' £1.9bn Barings Europe Select.
There were no new entrants to the top ten this week although there were 11 new entrants to the overall table.
The highest-placed new entrant was the £108m Schroder ISF European Equity Yield fund which is run by Andrew Evans and joined the table in 11th place.
This was one of two European funds to join the table as new entrants this week, the second was the £2.3bn Fidelity European fund run by Sam Morse which joined in 45th place.
In total, there were nine funds investing in European equities including six which specialised in European Smaller Companies such as Mark Heslop's £417m Threadneedle European Smaller Companies in ninth place .
Smaller companies were a popular theme on the table this week, as well as the nine European-focused smaller companies funds there were a further nine focused on the UK although none covered the US equivalent.
The UK funds included the £178m Marlborough Nano Cap Growth fund in tenth place, £64m Cavendish AIM in 21st place and £369m Jupiter UK Smaller Companies fund in 26th place.
Please note, Morningstar has begun running data on the RDR-friendly clean share classes that groups have launched in the past few years, which are now included in the charts.
The Consistent 50 is based on an assessment of all IA funds in the UK as monitored by Morningstar. Each fund is assessed for its consistency against other similarly invested vehicles as classified by IA sectors.
In the first step, all funds without a three-year track record are excluded. In order to ensure statistical validity, sectors with less than 20 funds are also excluded, as are those that do not allow like-for-like comparison, such as Specialist, Guaranteed/Protected and Money Market.
The three-year consistency score is then calculated by measuring a fund's average decile ranking (ADR) of quarterly performance periods rolling back on a month-by-month basis over three years.
The better a fund performs against its peers over a single period, the higher up the ranks it sits and the lower its decile rank. An average of a fund's decile rank as measured over the multiple time periods provides an indication of how much it moves up or down the ranks relative to its peers.
The bottom 60% of the funds across all sectors are then excluded based on the average decile rank. The remaining 40% of funds across all qualifying IA sectors are then sorted according to how they rank against their peers in terms of volatility and Gain/Loss Profile (with those funds with lower volatility being rewarded and equal weighting given to both measures). The top 50 funds are shortlisted to make the Consistent 50.
All data is calculated on a bid-to-bid, net income re-invested, sterling basis.
Average Decile Rank (ADR) is the funds average decile ranking of quarterly performance periods rolling back on a month-by-month basis over three years. The closer the rank to one, the more consistent the fund.
Gain/Loss Ratio is the sum of positive percentage fund returns divided by the sum of negative percentage fund returns over the chosen calculation period. The higher the resultant ratio, the greater the proportion of positive returns versus negative returns, therefore the better the fund's performance.
Volatility is the standard deviation of the fund's monthly returns over the past 36-months. The greater the volatility figure the greater the deviation in a funds monthly returns. Volatility can be used as a measure of risk.
The Morningstar RatingTM is calculated based on a fund's total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar category. The overall Morningstar Rating published here is based on a weighted average of a fund's 3-, 5-, and 10-year ratings, depending on the length of its record.
3-Year Sector Average is the average performance of all funds in the IMA sector over three years. Comparing the fund's cumulative three-year performance to the sector average highlights how the fund has performed against its peers.
Morningstar Equity Style Box is a graphical depiction of an equity [share] fund's dominant investment style at a given point in time. The style box combines two dimensions: size (large shares, medium-sized shares, small shares) and valuation (growth, blend, value), resulting in nine possible style combinations. More information at www.morningstar.co.uk
(TER) and Fund Size are supplied from the fund management companies and are the latest available to Morningstar.
Data Source: © 2018 Morningstar, Inc. All Rights Reserved.
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