Thursday, 29 September 2016

Performance Of UK Income Fund Managers

http://www.halogensoftware.com/uploads/learn/how-to/5-performance-management-tasks-that-are-often-overlooked/5-performance-management-tasks-that-are-often-overlooked.jpg
Source

When you are investing, it is quite difficult to know how well your particular approach is working out. This is why, in the past, as a DIY Income Investor I have looked at various benchmarks related specifically to income investing, as opposed to the other investment strategies.

So, imagine my interest in a comparison of the performance (over five years) of the 'best' professional income fund managers...

Generally speaking, I am not impressed by the professional money managers and funds. They seem to me as over-priced index-huggers - what they seem to provide is what private individuals can achieve themselves with a couple of cheap Exchange Traded Funds.

However, one of my ISA providers - TD Direct Investing - published this table of the performance of some of the most successful income-oriented fund managers.
Five-year performance of Best of British income funds - See more at: http://ican.tddirectinvesting.co.uk/investment-ideas/income-funds-making-dividends/?utm_source=Investor&utm_medium=email&utm_content=CTA_button&utm_campaign=Best_british_5_Income#sthash.OhLUZbAB.dpuf

5 Year Performance Of The Best UK Income Funds

Five-year performance of Best of British income funds - See more at: http://ican.tddirectinvesting.co.uk/investment-ideas/income-funds-making-dividends/?utm_source=Investor&utm_medium=email&utm_content=CTA_button&utm_campaign=Best_british_5_Income#sthash.OhLUZbAB.dpuf
Five-year performance of Best of British income funds - See more at: http://ican.tddirectinvesting.co.uk/investment-ideas/income-funds-making-dividends/?utm_source=Investor&utm_medium=email&utm_content=CTA_button&utm_campaign=Best_british_5_Income#sthash.OhLUZbAB.dpuf
five-year-past-performance
Source

Comparison

For comparison, the total returns for my DIY Income Investor portfolio have been as follows:
  • 2016 to end August: 23%
  • 2015: -3.3%
  • 2014: 11.4%
  • 2013: 20.4%
  • 2012: 33.7%
  • 2011: -2.2%

It seems that - over five years - the DIY Income Investor portfolio bears comparison with the best that the professionals can manage. It is clear however that the results have been more volatile, with better good years and worse bad years. One reason may be the relative concentration of my portfolio, compared to the diversification of the funds.

My hat is off to Troy Trojan Income, who have achieved a very impressive and consistent result over five years, I will have to look a bit more at how they have done it.

In any case, 2016 is going great guns for the DIY Income Investor portfolio, with the 2016 result so far being an over 25% total return - leaving the 'professionals' well behind.


I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.

2 comments:

  1. http://www.telegraph.co.uk/investing/bonds/manchester-building-society-cancels-interest-on-pibs/

    I see that the Manchester Building Society have let you down. I guess investing is always a gamble to some extent.

    ReplyDelete
    Replies
    1. Yes - unfortunately Manchester BS was a gamble too far. I'm still hoping another BS will buy it and repay at least some of my capital on the PIBS.

      Delete