Investment Adviser 100 Club 2016
T. Rowe Price has been announced as a member of the Investment Adviser 100 Club 2016.
This hand-picked selection of premier funds and asset managers consists of Investment Adviser’s top five selections across 20 investment categories.
Two T. Rowe Price funds have been announced as members owing to their impressive short and long-term performance and ability to pass a series of screening tests:
Click here for the full list of 2016 members.
The Investment Adviser 100 Club enables mutual funds and investment trusts to compete for membership, with trusts’ share price total returns considered. It also includes a selection of the best passive investment providers, making it an RDR-ready tool for intermediaries.
The calculation process is based on funds’ total returns over one and five years relative to the total returns of broadly relevant benchmark index or sector. The benchmark is chosen so a large group of funds can be reasonably compared with it. The data source was FE Analytics and all performance figures quoted are bid-to-bid and rebased in sterling where currencies differed. The performance figures range to 31 May 2015.
Candidate funds are ranked by their outperformance of a relevant benchmark in the year to 31 May 2015. Then potential 100 Club members are screened to ensure they delivered strong five-year returns. A fund must have put a double-digit gap – 10 percentage points or more – between its performance and that of its index in the past five years for it to convince us that it has long-term staying power. We expect it to deliver at least half that level of outperformance over one year – 5 percentage points or more for equity funds – to ensure it has delivered the kind of elite returns that would place it in our annual club of 100 funds.
Sometimes it is impossible to find funds in a sector that outperform by this demanding margin of 5 and 10 percentage points, so we narrow the margin proportionally – to 4 and 8, then 3 and 6 and so forth. Funds that underperformed the relevant benchmark in either one or five years are never included.
Candidate funds are then further screened to exclude the following, in order to ensure relevance to intermediaries:- Fund manager tenure less than 3 years.
– Mutual funds with less than £50m, trusts with a market cap below £100m (market capitalisation as at 31 May 2015).
– Enhanced index or other ‘passive-plus’ funds.- Products that are not UK authorised or available for distribution to retail investors, or funds which have an excessively selective distribution policy.
– Repeat funds from the same fund manager. If a fund manager qualifies more than once in any one category, best performing product gains entry.
– Soft- and hard-closed funds, and funds earmarked for soft closure at the time of calculation, are disqualified to ensure membership is relevant to fund buyers.
– Funds with no sterling share class.- Funds that fail to make basic information such as performance, minimum investment, tenure, how to invest etc available to data providers and the public.
When the best funds have achieved Investment Adviser 100 Club membership, the five large and mid-to-small investment managers with the most Club member funds enter two provider categories. Where managers have an equal number of funds, the combined one-year outperformance of the investment manager’s member funds breaks the tie. A large investment manager is defined as having at least £100bn in global assets, including the assets of its parent group.
The Passive Investment Groups category is populated based on the views of a series of respected multi-asset fund managers who were given a series of criteria and asked to nominate their favourite three providers, with the members selected in a points system.
In the Absolute Return sector, we assess funds’ long-term performance over one and three years, rather than the usual one and five. To screen out absolute funds with excessive long-only risk funds with rolling three-year month-end maximum drawdown greater than 8 per cent are excluded.
This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.
It is not intended for distribution to retail investors in any jurisdiction.