45% of investment companies have had the same fund manager for at least 10 years
Investment companies are well suited to long-term investing, due to features such as the ability to gear, and the closed-ended structure which allows the manager to take a long view of the market and ride out any ups and downs. But which managers have been around for the long-term too?
Of the 186 investment companies that have been in existence for 10 years or more (excluding VCTs), 83 have had the same manager for at least 10 years (45%). Furthermore, 19% 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.
The longest serving manager in the sector is Hugh Mumford, who has managed Electra Private Equity for an impressive 33 years and 9 months, joining on 30 September 1981.
A number of well-known names have managed investment companies in the UK Equity Income sector for a long time, including James Henderson, who has managed Lowland since 1 January 1990, and Job Curtis, who has managed City of London since 1 July 1991. Alastair Mundy has managed Temple Bar since 1 June 2000. In the Global sector, James Anderson began managing Scottish Mortgage on 1 April 2000.
Aberdeen Asian Smaller Companies has been managed by the same team of five managers since 19 October 1995, comprising Hugh Young, Flavia Cheong, Chou Chong, Adrian Lim and Christopher Wong. Hugh Young has also managed Aberdeen New Dawn since launch in 1989. Interestingly, 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.
Ian Sayers, Chief Executive, AIC, said:
“The closed-ended structure is the oldest form of collective investment, with a number of companies launched in the 1800s still in existence today. Add to this our unrivalled dividend track record, performance and tenure of managers, it is clear that investment companies are second to none when it comes to delivering over the long-term.”
Longest serving investment company managers (for member companies which have existed for at least 10 years)