Managers play a crucial role in how a fund performs, with their investment style, stock picking and decision making all culminating in the total return delivered to investors.
It is important to put your investment in a safe pair of hands, which is easier to do with experienced managers that have a long track record of success.
However, junior managers newer to the asset management game bring fresh ideas and often benefit from investing without cumbersome amounts of money or a previously entrenched approach.
Here, Trustnet asks expert fund pickers which young managers with less than three years’ experience have displayed a talent for investing.
Kelly Prior, manager in the multi-manager team at Columbia Threadneedle, said that Jupiter’s Hilary Blandy is a gifted manager with a promising career ahead of her.
Her investment journey began in 2002 and she spent several years as an investment analyst before being appointed manager of the Jupiter Monthly Income Bond fund in September 2020.
Since taking over the £144m portfolio, the fund is up 0.6%, beating the IA Sterling Strategic Bond sector average by 7.22 percentage points and taking a 2.4 percentage point lead against the ICE BofAML Sterling High Yield benchmark.
Total return of fund vs benchmark and sector since Blandy took over
Source: FE Analytics
Compared to its sectoral peers and relative benchmark, it was the only one to make a positive return over the period, which Prior attributes to Blandy’s experience as an analyst.
She said: “The key here is that there is huge resource and genuine collaboration between the analysts and portfolio managers at Jupiter. Hilary is exceptionally well placed to understand this resource having worked on both sides of the fence given her previous role as head of fixed research.
“The jump from analyst to portfolio manager does not suit everyone but Hilary is definitely one to watch.”
Another to keep an eye on is Liontrust’s Alex Wedge, according to Jason Hollands, managing director of Evelyn Partners.
Wedge moved to Liontrust in March 2020 after spending more than seven years as an equity salesman at small-cap focused stockbroking firm, N+1 Singer.
He was promoted to co-manager on the Economic Advantage Team at the start of 2021, joining FE fundinfo Alpha managers, Anthony Cross and Julian Fosh.
Funds managed by the team include Liontrust UK Smaller Companies and UK Micro Cap, both of which have cumulative assets under management (AUM) of more than £1.4bn.
Total return of funds since Wedge joined the management team
Source: FE Analytics
Hollands said: “It is way too early to assess Wedge’s personal record, but the build-out of the team is all part of a longer-term succession plan for this key Liontrust franchise.
“As a small, five-strong team managing significant assets, you can be sure the recruitment approach has focused on people who can both make a valuable contribution now but also have great long term potential.”
Investors may also want to keep an eye on Fotis Chatzimichalakis, manager on Impax’s Specialists and Climate strategies, according to Rob Morgan, chief analyst at Charles Stanley Direct.
He joined Impax as an intern in 2015 before being promoted to co-manager of the £1.3bn Environmental Markets Trust in October 2021.
Total return of fund vs index
Source: FE Analytics
The trust has undergone a difficult period of volatile markets since he joined the management team and returns are down 17.1% as a result, but Morgan is confident in Chatzimichalakis moving forward.
He said: “It’s always good to see a blend of youth and experience, and with Bruce Jenkyn-Jones and Jon Forster alongside we believe this an expertly managed Trust targeting environmental solutions.
“As a global mandate focused on a fast-changing part of the market the process is research intensive and strength in depth is important.”