FUND RECOMMENDATIONS Page Summary: Mandates matter more than managers |
Discussion and Evidence
| Sceptic: | Even if these are actual recommendations, they are still theoretical. Recommendations for specific funds are a different matter. |
| Response: | To show that this works as well, here is a review of fund recommendions by our CEO for his column in Investment Adviser magazine. |
| Key Facts: | Since publication the majority have all beaten their sector peers, and many have done so by substantial margins. |
| Statistics: | Total returns for the year to 31/3/2004 are +38% on average versus 28% for the respective IMA sector peer groups |
Dewhirst's View of the IMA
sectors reviewed each week
(Recommendations over one year old
by March 2004)
| Funds Recommended | IMA Sector | 12 Month Total Return | ||
| Fund | Sector | Gap | ||
| St. James Place Recovery Fund | Global Growth | 59% | 25% | 34% |
| GAM International Growth Fund | Global Growth | 55% | 25% | 31% |
| Legg Mason European TMT | Technology & Telecoms | 56% | 25% | 30% |
| Shires Smaller Companies IT | UK Equity Income | 58% | 30% | 28% |
| Fidelity Special Situations | UK All Companies | 54% | 31% | 24% |
| Govett Asian Recovery IT | Global Emerging Mkts | 69% | 48% | 22% |
| M&G Global Basics | Specialist | 43% | 25% | 18% |
| M&G Recovery Fund | UK All Companies | 45% | 31% | 15% |
| Baring Korea | Specialist | 37% | 25% | 12% |
| Fidelity Asian Values IT | Global Emerging Mkts | 60% | 48% | 12% |
| Scottish Oriental Smaller Companies IT | Far East ex Japan | 47% | 37% | 9% |
| Threadneedle Emerging Market Bond | Global Bond | 10% | 0% | 9% |
| M&G Emerging Market Bond | Global Bond | 7% | 0% | 7% |
| Jupiter High Income | UK Equity & Bond Income | 27% | 20% | 6% |
| Aberdeen Asia Pacific | Far East inc Japan | 43% | 38% | 5% |
| Fidelity American Special Situations | North America | 15% | 11% | 4% |
| Newton Balanced Managed | Balanced Managed | 23% | 22% | 1% |
| Templeton Emerging Markets IT | Global Emerging Mkts | 47% | 48% | -1% |
| Norwich Union Preference Share | UK Other Bond | 12% | 13% | -2% |
| No Recommendation | Money Market | 0% | 3% | -3% |
| No Recommendation | UK Gilt | 0% | 3% | -3% |
| Family Balanced Managed | Balanced Managed | 17% | 22% | -5% |
| Aberforth UK Smaller Companies | UK Smaller Companies | 60% | 65% | -5% |
| C.F. Odey European | Europe ex UK | 24% | 30% | -6% |
| No Recommendation | UK Corporate Bond | 0% | 7% | -7% |
| Teather & Greenwood UK Smaller Cos. | UK Smaller Companies | 57% | 65% | -8% |
| Aberforth Smaller Companies IT | UK Smaller Companies | 55% | 65% | -10% |
| Average Recommendation | 36% | 28% | 8% | |
| Sceptic: | That may show your recommendations can beat their peer groups, but it does not show which peer groups are likely to out-perform |
| Response: | Look at these paper income and growth portfolios for two other journals. They are more appropriate tests of asset allocation. |
| Key Facts: | At the first anniversary of their launch in January and March 2003 respectively, both portfolios beat the average Managed Fund substantially. |
| Statistics: | The income portfolio for Fund Stratey was up +42% versus +31% and the growth portfolio for Professional Adviser was up +39% versus +24% |
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| Income
portfolio recommended by Nick Dewhirst My Asset Allocation, dated 30th March 2003 |
Growth portfolio
recommended by Nick Dewhirst "Time to get back into equities", dated 30th January 2003 |
Please email for copies
of "Dewhirst's View" on IMA
fund sector reviews, specifying sector of interest
For further information on fund portfolios,
please email reports on Income
Portfolio or Growth
Portfolio