Head To Head

HEAD-TO-HEAD: Ninety One versus Threadneedle

FSA compares two UK equities products: the Ninety One UK Alpha Fund and the Threadneedle UK Select Fund.

by Rupert Walker 21 May 20218 August 2022

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Darius McDermott, Chelsea Financial Services

Introduction

The UK stock market has been buffeted by domestic political turmoil as much as by world events during the past few years.

However, 2021 has sparked some optimism. The country completed its exit from the European Union with a last-ditch trade agreement on the movement of goods, and fears that there would be severe disruption with its largest trading partner have, for the moment, not materialised.

There are grounds for confidence that the UK economy is set for a robust recovery, buttressed by an efficient vaccine roll-out, with leisure and hospitality businesses set to benefit from pent-up consumer demand.

On the flipside an economic bounce-back, combined with a fiscally loose environment and some supply-chain challenges due to the coronavirus, could well stoke inflation, while the central bank has indicated that it will not move quickly to hike interest rates if prices were to rise.

Against this background, FSA asked Darius McDermott, managing director, Chelsea Financial Services to select two UK equities products for comparison: the Ninety One UK Alpha Fund and the Threadneedle UK Select Fund.

	Ninety One	Threadneedle
Size	$492m	$394m
Inception	2004	1934
Managers	Simon Brazier	Chris Kinder
Three-year cumulative return	8.01%	2.12%
Annualised return	2.46%	0.62%
Annualised alpha	0.09	-5.21
Annualised volatility	22.61%	23.45%
Information ratio	-0.00	-0.73
Morningstar star rating	***	**
Morningstar analyst rating	Neutral	Neutral
FE Crown fund rating	***	**
OCF (retail share class)	1.89%	1.64%

Source: FE Fundinfo, Morningstar. (Data in US dollars)

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