Fund Manager Return

Funds and their Sectors have a "relationship".   This relationship can be illustrated with a Trend Graph; showing how a  fund  and the sector it trades within respond in different market conditions.

This presentation of a fund's performance more readily identifies a change in a fund's fortunes than figures alone.  

The Trend Graphs  that follow show how a fund has performed over a series of 48, 1 year investment periods, taken at one-month intervals. Therefore the analysis of a lump sum investment would normally cover the last 5 years of past performance.  

• Historical performance is to the left and current performance to the right of the graph. 

• White bars are periods of negative and green positive returns. 

So, has the fund manger created additional value?   By looking at the Sector's return over the same period we can see a very similar performance profile.

Then by subtracting the Sector Return from the Fund's Return we can see the value added by the Fund Manager.

In this instance the fund closely follows the performance of the sector; with no discernable additional wealth created by the manager.

This is in marked contrast to the Skandia fund which has ‘geared’ the sector’s return: outperforming the sector in favorable conditions and underperforming the sector during adverse conditions.

The fund above performed well in adverse conditions, at the expense of underperformance of the sector during positive conditions. 

Whereas the two following funds produced excellent returns in both positive and adverse conditions. 

Unfortunately, many fund managers are producing investment returns consistently below average; with the folowing underperforming their benchmark in both favorable and adverse market conditions.

Fund Performance Analysis is performed by Figaro for the five year period ending October 2008, on data supplied by Morningstar. Whilst Figaro take great care in compiling the figures and information shown, no liability can be accepted for any error or omission.

Past Performance is not necessarily a guide to future performance.