Posted inHead To Head

HEAD-TO-HEAD: JOHCM versus Threadneedle

FSA compares two UK equity products: the JOHCM UK Dynamic Fund and the Threadneedle UK Extended Alpha Fund.
by Rupert Walker

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Conclusion

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, has assigned a one-crown rating to both the JOHCM and the Threadneedle funds.

Morningstar rates them higher, based on historical returns, awarding each fund three stars, but assigning a forward-looking analyst rating of silver to JOHCM and just neutral to Threadneedle.

“The managers of both funds look for out-of-favour companies: there have been plenty to choose from in the UK recently,” said McDermott.

“The main difference is that the Threadneedle fund product is more large-cap centric compared with the multi-cap approach of the JOHCM fund,” he noted.

“If forced to choose, we would lean slightly towards the JOHCM fund given it has performed so well in the midst of a strong growth style headwind,” said McDermott.

“That being said, the downside protection offered by the Threadneedle fund – when facing a number of market headwinds – makes it an ideal core UK offering,” he concluded.

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