Investment Week and Morningstar's latest look at the most consistent fund managers across the unit trust and OEIC universe. Sponsored by Franklin Templeton Investments.
This week's data covers the three years to 10 August 2018.
There are four new entrants to this week's Consistent 50 including two in the top ten.
The first was the £1.1bn Legg Mason ClearBridge US Large Cap Growth fund which is managed by Peter Bourbeau and joined in fifth place.
This was the only fund from the IA North America sector to be featured in the list this week, although there was a fund from the IA North American Smaller Companies sector which was Cormac Weldon's £429m Artemis US Smaller Companies fund.
It was followed by the Sentinel Universal fund in tenth place, which is managed by David Hambidge and is much smaller than the Legg Mason fund at £103m.
The remaining two new entrants were the £9m Fidelity Asian Dividend fund which joined in 13th place and £186m Zurich Horizon Multi-Asset III fund in 47th place. These are managed by Jochen Breuer and Alex Lyle respectively.
Both the Zurich and the Sentinel funds sit in the IA Mixed Investment 40%-85% Shares sector, two of the ten multi-asset funds featured on the table this week.
At the top of the table, Gervais Williams and Martin Turner's £1.2bn LF Miton UK Multi Cap Income fund was in first place for the second consecutive week. All four funds in the top four positions were unchanged from the previous week.
Following this was the Matthews Asia Funds China Dividend fund, one of the smallest funds in the table at only £11m and managed by Yu Zhang, in second place.
In third place was the £1.6bn Man GLG Continental European Growth which is managed by Rory Powe and the £132m MI Hawksmoor Distribution fund run by Daniel Lockyer in fourth 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.
Two join in the top ten
Reducing equities and corporate bonds
Behaviours, animals or something else?
Stepped down following MBO
Helped by rising oil price