FUND MANAGER OF THE YEAR | The Shortlist day nine
Institutional investors play a critical role across the spectrum of corporate life and wealth generation in the UK. From generating households’ pension or life insurance income, to ensuring companies maintain the highest standards of corporate governance, their decisions are vital. In an increasingly globalised and competitive world, the City’s investment managers have proved themselves innovative, agile and adept at generating world-leading fund performances and investment returns for their clients.
M&G
INVESTMENTS
The Prudential’s fund manager delivered a storming performance in 2010, seeing £26.4bn gross inflows in the year – a new record for the business that beat its previous high of £24.9bn in 2009 – that took its funds under management up 14 per cent to a whopping £198bn.
It has generated and held investors’ confidence and is in demand across a range of asset classes including equity, property and fixed income.
M&G has also stepped up to its governance mandate over the past year, backing the board of National Express when its largest shareholder, activist fund Elliott Advisors, agitated for a sale or break-up of the group.
AVIVA INVESTORS
Aviva’s in-house asset manager, with operations in 14 countries and £260bn under management, saw almost three quarters of its funds beat their benchmarks last year.
It saw a dramatic reversal in net funded external sales, from £236m outflows in 2009 to £2.4bn inflows in 2010, while funds under management rose four per cent. It is still expanding its funds’ range and global presence, with new licences to operate in Taiwan and China.
Its property and fixed income funds are award-winning while its engagement on issues from energy to remuneration have placed it at the forefront of industry best practice.
ABERDEEN ASSET MANAGEMENT
A jump of 54 per cent in pre-tax profit in the past six months is just the latest sign that Aberdeen is a market leader in asset management.
With more than £180bn under management by March, this innovative fund manager has benefited from a strong emerging markets focus, to the extent that it is having to slow down the rate of growth into those funds to prevent them becoming unmanageably large.
Revenues rose by a third in the past six months while performance fees more than doubled. Its last full-year results also beat forecasts by almost ten per cent, and it promises more strong organic growth to come.
SCHRODERS
One of the City’s most successful fund managers, Schroders prides itself on thinking ahead of the curve and running counter to prevailing market sentiment.
From mid-cap fund manager Andy Brough’s decision to back troubled music retailer HMV in January, to head of equities Richard Buxton’s refusal to buy into the blockbuster Glencore float, Schroders continues to act as a thought leader in the market while also delivering continually strong financial performances.
Pre-tax profits more than tripled to £407m in the past year while funds under management rose by £27bn to £197bn as investors ploughed into its emerging market funds.
Its willingness to chastise performance or governance breaches also place it among the UK’s top managers.
JUPITER FUND
MANAGEMENT
Jupiter’s star has been rising for a while now, as fund inflows and profits continue to grow following its successful London flotation last June despite torrid market conditions.
Under chief executive Edward Bonham Carter, the fund manager has produced a stellar performance that has boosted its share price from 165p at flotation to about 241p today.
Net revenues are expected to be up 15 per cent in the first half of 2011 thanks to growing management fees, while pre-tax profit jumped 490 per cent to £42.4m in the past year.
With £24.8bn assets under management and successful emphasis on sustainable investment, strategic bonds and emerging markets, analysts believe Jupiter is positioned for further growth in future.