45% of investment companies have had the same fund manager for at least ten years, industry research finds.
Out of a total of 186 investment companies, 83 were found to have had the same manager for at least 10 years, according to the Association of Investment Companies (AIC), which based its findings on analysis of Morningstar data relating to those of its members that have been in existence for ten years or more.
The research also found that 19% AIC of member companies (35) have had the same manager for at least 15 years, and 11% of member companies (21) have had the same manager for at least 20 years.
At March 31, the AIC had 345 members with £123.2 billion (€172.2 billion) of assets under management.
The AIC findings show that the longest serving manager in the sector is Hugh Mumford, who has managed the British-based investment trust, Electra Private Equity, for 33 years and nine months, joining on September 30, 1981. Dr Mark Mobius has also had significant tenure of just over 26 years with Templeton Emerging Markets UK.
The UK Equity Income sector stands out as an area for longevity, showing a number of names that have managed investment companies for some time. Two examples are James Henderson, who has managed the Lowland Investment Company (part of Henderson Global Investors) since January 1, 1990, and Job Curtis, who has managed City of London Investment Trust since July 1, 1991.
The AIC findings also highlight that managers of investment companies focused on the Asia region make up 61% of those who have been managing the same fund for at least 15 years. Aberdeen Asian Smaller Companies, for example, has been managed by the same team of five managers since October 19, 1995 – comprising Hugh Young, Flavia Cheong, Chou Chong, Adrian Lim and Christopher Wong.
The AIC also recently found that during the last 18 months, one fifth of investment companies had appointed a fund manager, according to an analysis of Morningstar data relating to AIC members, suggesting that new faces are appearing in the industry in response to factors such as the demand for strong and consistent performance.
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