Half of investment companies managed by the same fund manager for more than 10 years

Theresa May announced her resignation as Conservative Party leader on 7 June having been appointed nearly three years before. However, 21 British Prime Ministers had even shorter tenures, including Gordon Brown, Neville Chamberlain and George Canning, who was Prime Minister for just four months in 1827. With a change of leader expected, the Association of Investment Companies (AIC) has examined the tenure of investment company managers. It finds that half of investment companies have been managed by the same person for 10 years or more.

Out of all AIC member investment companies (ex VCTs) with a track record of 10 years or more,
94 companies (50%) have been managed by at least one of their current fund managers for 10 years or longer. Whilst this is impressive, several managers have track records stretching back much further than that: 19 companies (10%) have been managed by the same manager for over 20 years.

Longest-serving managers

The investment company industry’s longest-serving manager is Peter Spiller, who has managed Capital Gearing for over 37 years. Following close behind is Simon Knott, manager of Rights & Issues for 35 years. Next longest-serving is Hugh Young, who has helped manage Aberdeen New Dawn since its launch 30 years ago. Hot on their heels are James Henderson, manager of Lowland for over 29 years and Richard Newbery and Alistair Whyte, managers of Aberforth Smaller Companies for over 28 years.

Quotes from Peter Spiller, Hugh Young and James Henderson on the lessons they’ve learned and their proudest moments follow below, as well as a complete table of the longest-serving managers.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Investors are often told they should be thinking long-term, so it’s reassuring to see that so many investment companies have managers with impressively long records. Half of AIC members have had the same manager for at least ten years, and many have had the same manager for much longer. With markets always unpredictable, it’s reassuring for investors that many investment company managers have steered their company through different conditions, experiencing good times and bad.

“Since last year, we’ve seen an additional 13 fund managers celebrate a 10-year anniversary of managing their investment company. With the structural benefits of investment companies, such as not having to deal with inflows and outflows, it’s easy to see why managers might enjoy working on investment companies for long periods.”

Manager quotes: most important lesson learned

Peter Spiller, Manager of Capital Gearing, said: “It is hard to pinpoint a single lesson that will endure: politics, markets, and economies are continuously evolving. No one rule, no one approach, can hope to serve you well over the long term. You must learn to adapt.

“Nevertheless, the old stock market saying – that equities climb by the stairs but go down by the elevator – is very true. It is important for managers never to become complacent after a long period of steady gains.

“The unsustainable will not be sustained but it can take surprisingly long for the inevitable to happen. Excessive debt, high valuations and negative interest rates are all things that, for the time being, meet this description.”

James Henderson, Co-manager of Lowland Investment Company, said: “A key feature of the investment trust structure is the independent board of directors and one of the most important things I’ve learned over my career is the value of the board. The role of the board is to act on behalf of shareholders’ interests, but I’ve also found working with the board to be incredibly beneficial to how I manage money. Over my tenure managing Lowland Investment Company, I have worked with four different chairmen who have each brought their own unique insights to the trust and, at times, tested me as a manager to ensure we get the best for shareholders. Their investment insights and support in the good times – as well as the bad – adds real value.”

Hugh Young, Investment Manager on Aberdeen New Dawn, said: “I’ve been fortunate to be involved with the management of New Dawn since launch, but its success has been truly a team effort. Members of the current team have been involved with the trust for almost 20 years and longer. The longevity and tenure of the team when combined with new people joining, has been crucial. We’ve learnt lessons from past experiences whilst new members of the team have brought fresh perspectives. I hope that the young talent we have coming through in Asia means that the trust will continue to benefit from a mix of young and old heads over the next 30 years.”

Best moment as a manager

James Henderson, Co-manager of Lowland Investment Company, said: “I remember this quite clearly, as it was only a couple of years after I was appointed manager of Lowland. It was in 1992 when the UK left the ERM (Exchange Rate Mechanism). Some might think this a strange moment to pick as one of the best moments, but before we left the ERM businesses in the UK were struggling with high interest rates and sterling and our exit caused interest rates to be cut and sterling to fall, which boosted the UK economy. Throughout this whole period we stuck with the UK and our domestic investments, which was the right thing to do because the boost in the UK economy following our ERM exit gave a real boost to our portfolio. Ironically, we’re now living through a time where the opposite seems to be occurring and trying to break away from the EU is causing suffering to the UK economy, but if we don’t have a hard Brexit there is substantial upside in UK equities.”

Peter Spiller, Manager of Capital Gearing, said: “I had a moment of satisfaction when, earlier this summer, the share price of Capital Gearing reached £42.50 which was exactly 200 times the share price when I took over managing the trust in 1982.”

What keeps you motivated?

James Henderson, Co-manager of Lowland Investment Company, said: “I think it’s important to be aligned with shareholders. When I was appointed manager of Lowland in 1990, I bought shares in the company at £1.70 a share and I’ve added to my personal holding a few times since then. Lowland’s current share price is around £13.50 and in our most recent half-year report the board announced it intends to pay total dividends of around 59p for the year. I not only manage the portfolio for Lowland but have ‘skin in the game’ too, so I understand the importance of continuing to grow both capital and income and am motivated to keep achieving this for our shareholders over the long term.”

Peter Spiller, Manager of Capital Gearing, said: “The extraordinary, not to say, distorted nature of the world economy is an endless source of fascination.”

Longest-serving managers (AIC members, ex VCTs) at end June 2019

Company name	AIC sector	Manager name	Effective	Time
Capital Gearing	Flexible Investment	Peter Spiller	01/01/1982	37 years 5 months
Rights & Issues	UK Smaller Companies	Simon Knott	01/01/1984	35 years 5 months
Aberdeen New Dawn	Asia Pacific	Hugh Young	12/05/1989	30 years 1 month
Lowland	UK Equity Income	James H Henderson	01/01/1990	29 years 5 months
Aberforth Smaller Companies	UK Smaller Companies	Richard M J Newbery	10/12/1990	28 years 6 months
Aberforth Smaller Companies	UK Smaller Companies	Alistair J Whyte	10/12/1990	28 years 6 months
City of London	UK Equity Income	Job Curtis	01/07/1991	27 years 11 months
Mercantile	UK All Companies	Martin Hudson	01/01/1994	25 years 5 months
Herald	Global Smaller Companies	Katie Potts	16/02/1994	25 years 4 months
JPMorgan Emerging Markets	Global Emerging Markets	Austin Forey	01/06/1994	25 years 0 months
Aberdeen Standard Asia Focus	Asia Pacific Smaller Companies	Hugh Young	19/10/1995	23 years 8 months
Schroder AsiaPacific	Asia Pacific	Matthew Dobbs	20/11/1995	23 years 7 months
British & American	UK Equity Income	Jonathan Woolf	03/01/1996	23 years 5 months
Atlantis Japan Growth	Japanese Smaller Companies	Edwin C Merner	10/05/1996	23 years 1 month
Atlantis Japan Growth	Japanese Smaller Companies	Taeko Setaishi	10/05/1996	23 years 1 month
JPMorgan European Growth	Europe	Stephen Macklow-Smith	01/01/1997	22 years 5 months
BMO Capital & Income	UK Equity Income	Julian Cane	01/03/1997	22 years 4 months
JPMorgan Indian	Country Specialist: Asia Pacific - ex Japan	Rukhshad Shroff	01/01/1998	21 years 5 months
JPMorgan Smaller Companies	UK Smaller Companies	Georgina Brittain	02/01/1998	21 years 5 months
JPMorgan European Smaller Companies	European Smaller Companies	Francesco Conte	01/11/1998	20 years 7 months
Chelverton UK Dividend	UK Equity Income	David Horner	12/05/1999	20 years 1 month
Perpetual Income & Growth	UK Equity Income	Mark Barnett	01/07/1999	19 years 11 months
BMO Private Equity	Private Equity	Hamish Mair	01/02/2000	19 years 5 months
Scottish Mortgage	Global	James K. Anderson	01/04/2000	19 years 2 months
JPMorgan Japanese	Japan	Shoichi Mizusawa	25/07/2000	18 years 11 months
BlackRock World Mining	Commodities & Natural Resources	Evy Hambro	01/09/2000	18 years 9 months
Independent Investment Trust	UK All Companies	Maxwell Ward	18/10/2000	18 years 8 months
Jupiter European Opportunities	Europe	Alexander Darwall	22/11/2000	18 years 7 months
Finsbury Growth & Income	UK Equity Income	Nick Train	11/12/2000	18 years 6 months
HgCapital	Private Equity	Nic Humphries	01/01/2001	18 years 5 months
Jupiter US Smaller Companies	North American Smaller Companies	Robert Siddles	01/01/2001	18 years 5 months
Lindsell Train	Global	Nick Train	22/01/2001	18 years 5 months
Invesco Enhanced Income	Debt - Loans & Bonds	Paul Read	01/02/2001	18 years 4 months
Invesco Enhanced Income	Debt - Loans & Bonds	Paul Causer	01/02/2001	18 years 4 months
International Biotechnology	Biotechnology & Healthcare	Kate Bingham	01/05/2001	18 years 1 month
Aberforth Smaller Companies	UK Smaller Companies	Euan R MacDonald	14/05/2001	18 years 1 month
JPMorgan Russian Securities	Country Specialist: Europe - ex UK	Oleg Biryulyov	09/01/2002	17 years 5 months
Impax Environmental Markets	Environmental	Bruce Jenkyn-Jones	22/02/2002	17 years 4 months
Impax Environmental Markets	Environmental	Jon Forster	22/02/2002	17 years 4 months
Pantheon International	Private Equity	Andrew Lebus	31/07/2002	16 years 10 months
Temple Bar	UK Equity Income	Alastair Mundy	01/08/2002	16 years 10 months
Henderson Smaller Companies	UK Smaller Companies	Neil Hermon	01/11/2002	16 years 7 months
Schroder UK Mid Cap	UK All Companies	Andy Brough	30/04/2003	16 years 2 months
City Merchants High Yield	Debt - Loans & Bonds	Paul Read	01/05/2003	16 years 2 months
City Merchants High Yield	Debt - Loans & Bonds	Paul Causer	01/05/2003	16 years 2 months
Artemis Alpha Trust	UK All Companies	John Dodd	01/06/2003	16 years 0 months
Law Debenture Corporation	UK Equity Income	James H Henderson	01/06/2003	16 years 0 months
Bankers	Global	Alex Crooke	01/07/2003	15 years 11 months
Standard Life UK Smaller Companies	UK Smaller Companies	Harry Nimmo	01/09/2003	15 years 9 months
EP Global Opportunities	Global	Sandy Nairn	15/12/2003	15 years 6 months
Miton Global Opportunities	Flexible Investment	Nick Greenwood	06/04/2004	15 years 2 months
Murray International	Global Equity Income	Bruce Stout	16/06/2004	15 years 0 months
Ruffer Investment Company	Flexible Investment	Steve Russell	08/07/2004	14 years 11 months
Schroder Real Estate	Property - UK Commercial	Duncan Owen	15/07/2004	14 years 11 months
Schroder Real Estate	Property - UK Commercial	Nick Montgomery	15/07/2004	14 years 11 months
BlackRock Greater Europe	Europe	Sam Vecht	20/09/2004	14 years 9 months
Aberdeen New India	Country Specialist: Asia Pacific - ex Japan	Kristy Fong	09/12/2004	14 years 6 months
BMO Commercial Property	Property - UK Commercial	Richard Kirby	17/03/2005	14 years 3 months
Biotech Growth	Biotechnology & Healthcare	Richard Klemm	19/05/2005	14 years 1 month
Biotech Growth	Biotechnology & Healthcare	Geoffrey Hsu	19/05/2005	14 years 1 month
Brunner	Global	Lucy MacDonald	30/06/2005	13 years 11 months
JPEL Private Equity	Private Equity	Troy Duncan	30/06/2005	13 years 11 months
JPEL Private Equity	Private Equity	Gregory Getschow	30/06/2005	13 years 11 months
JPMorgan American	North America	Eytan Shapiro	01/07/2005	13 years 11 months
JPMorgan Chinese	Country Specialist: Asia Pacific - ex Japan	Howard Wang	01/07/2005	13 years 11 months
Invesco Income Growth	UK Equity Income	Ciaran Mallon	28/07/2005	13 years 11 months
Schroder Oriental Income	Asia Pacific Income	Matthew Dobbs	28/07/2005	13 years 11 months
BMO Global Smaller Companies	Global Smaller Companies	Peter Ewins	31/07/2005	13 years 10 months
JPMorgan European Income	Europe	Stephen Macklow-Smith	02/08/2005	13 years 10 months
JPMorgan European Income	Europe	Michael Barakos	02/08/2005	13 years 10 months
JPMorgan European Income	Europe	Alexander Fitzalan Howard	02/08/2005	13 years 10 months
Chelverton UK Dividend	UK Equity Income	David Taylor	01/12/2005	13 years 6 months
JPMorgan Indian	Country Specialist: Asia Pacific - ex Japan	Rajendra Nair	01/01/2006	13 years 5 months
JPMorgan Chinese	Country Specialist: Asia Pacific - ex Japan	Shumin Huang	02/01/2006	13 years 5 months
JPMorgan Elect Managed Cash	Liquidity Funds	Katy Thorneycroft	01/02/2006	13 years 4 months
JPMorgan Elect Managed Growth	Global	Katy Thorneycroft	01/02/2006	13 years 4 months
Marwyn Value Investors	UK Smaller Companies	James Corsellis	22/02/2006	13 years 4 months
Marwyn Value Investors	UK Smaller Companies	Mark Watts	22/02/2006	13 years 4 months
Polar Capital Technology	Technology & Media	Ben Rogoff	01/05/2006	13 years 2 months
JPMorgan European Growth	Europe	Alexander Fitzalan Howard	04/05/2006	13 years 1 month
Merchants	UK Equity Income	Simon Gergel	01/06/2006	13 years 0 months
Macau Property Opportunities	Property - Rest of World	Martin Tacon	05/06/2006	13 years 0 months
Jupiter Green	Environmental	Charles Thomas	08/06/2006	13 years 0 months
Middlefield Canadian Income Trusts	North America	Dean Orrico	06/07/2006	12 years 11 months
JPMorgan Chinese	Country Specialist: Asia Pacific - ex Japan	Emerson Yee Shun Yip	01/08/2006	12 years 10 months
Standard Life Investments Property Income	Property - UK Commercial	Jason Baggaley	13/09/2006	12 years 9 months
Murray Income	UK Equity Income	Charles Luke	03/10/2006	12 years 8 months
International Biotechnology	Biotechnology & Healthcare	Ailsa Craig	01/11/2006	12 years 7 months
Aberdeen Japan	Japan	Chern-Yeh Kwok	10/11/2006	12 years 7 months
Volta Finance	Debt - Structured Finance	Alexandre Martin-Min	15/12/2006	12 years 6 months
Acorn Income	UK Equity & Bond Income	Paul Smith	05/01/2007	12 years 5 months
Henderson Opportunities	UK All Companies	James H Henderson	24/01/2007	12 years 5 months
Henderson Far East Income	Asia Pacific Income	Michael Kerley	02/02/2007	12 years 4 months
Allianz Technology	Technology & Media	Walter Price	01/05/2007	12 years 2 months
Real Estate Credit Investments	Property - Debt	Richard Lang	25/06/2007	12 years 0 months
Henderson Diversified Income	Debt - Loans & Bonds	John Pattullo	18/07/2007	11 years 11 months
Henderson Diversified Income	Debt - Loans & Bonds	Jenna Barnard	18/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Daniel S. Loeb	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Munib Islam	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Brad Radoff	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Neel Devani	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Timothy S. Lash	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Brigitte M. Roberts	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Jim Carruthers	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Jeff Perry	20/07/2007	11 years 11 months
Third Point Offshore Investors	Hedge Funds	Rob Schwartz	20/07/2007	11 years 11 months
Gulf Investment	Global Emerging Markets	Leonard O'Brien	31/07/2007	11 years 11 months
Edinburgh Dragon	Asia Pacific	Adrian Lim	31/08/2007	11 years 9 months
Volta Finance	Debt - Structured Finance	Francois Touati	01/10/2007	11 years 8 months
Volta Finance	Debt - Structured Finance	Serge Demay	01/10/2007	11 years 8 months
Princess Private Equity Holding	Private Equity	Rene Biner	01/11/2007	11 years 7 months
Princess Private Equity Holding	Private Equity	Marcel Erni	01/11/2007	11 years 7 months
Princess Private Equity Holding	Private Equity	Alfred Gantner	01/11/2007	11 years 7 months
Princess Private Equity Holding	Private Equity	Philipp Gysler	01/11/2007	11 years 7 months
Princess Private Equity Holding	Private Equity	Walter Keller	01/11/2007	11 years 7 months
Princess Private Equity Holding	Private Equity	Sandra Pajarola	01/11/2007	11 years 7 months
Princess Private Equity Holding	Private Equity	Christoph Rubeli	01/11/2007	11 years 7 months
JPMorgan Japanese	Japan	Nicholas Weindling	12/11/2007	11 years 7 months
CQS New City High Yield	Debt - Loans & Bonds	Ian Francis	30/11/2007	11 years 7 months
VinaCapital Vietnam Opportunity	Country Specialist: Asia Pacific - ex Japan	Andy An Ho	01/01/2008	11 years 5 months
JPMorgan Elect Managed Income	UK Equity Income	John Baker	01/03/2008	11 years 4 months
BMO Managed Portfolio Growth	Flexible Investment	Peter Hewitt	16/04/2008	11 years 2 months
BMO Managed Portfolio Income	Flexible Investment	Peter Hewitt	16/04/2008	11 years 2 months
Crystal Amber	UK Smaller Companies	Jonathan Marsh	17/06/2008	11 years 0 months
Crystal Amber	UK Smaller Companies	Richard Bernstein	17/06/2008	11 years 0 months
Blue Planet Investment Trust	Global High Income	Kenneth Murray	18/06/2008	11 years 0 months
JZ Capital Partners	Flexible Investment	David W Zalaznick	01/07/2008	10 years 11 months
JZ Capital Partners	Flexible Investment	Jay Jordan	01/07/2008	10 years 11 months
Baring Emerging Europe	European Emerging Markets	Matthias Siller	01/12/2008	10 years 6 months
Personal Assets	Flexible Investment	Sebastian Lyon	03/03/2009	10 years 3 months
NB Private Equity Partners	Private Equity	Anthony D. Tutrone	13/03/2009	10 years 3 months
NB Private Equity Partners	Private Equity	John P. Buser	13/03/2009	10 years 3 months
NB Private Equity Partners	Private Equity	Brien P. Smith	13/03/2009	10 years 3 months
NB Private Equity Partners	Private Equity	David S. Stonberg	13/03/2009	10 years 3 months
NB Private Equity Partners	Private Equity	Jonathan D. Shofet	13/03/2009	10 years 3 months
NB Private Equity Partners	Private Equity	John H. Massey	13/03/2009	10 years 3 months
NB Private Equity Partners	Private Equity	Joana Rocha Scaff	13/03/2009	10 years 3 months
JPMorgan US Smaller Companies	North American Smaller Companies	Don San Jose	01/05/2009	10 years 2 months
Artemis Alpha Trust	UK All Companies	Adrian Paterson	01/07/2009	10 years 0 months

Source: Morningstar

-Ends-

Notes

The percentage of investment companies that have had at least one manager for the last 10+ years is based on all AIC member investment companies that launched in June 2009 or before, excluding VCTs.
The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 360 members and the industry has total assets of approximately £190 billion.
Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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Half of investment companies managed by the same fund manager for more than 10 years

Longest-serving managers

Manager quotes: most important lesson learned

Best moment as a manager

What keeps you motivated?

Longest-serving managers (AIC members, ex VCTs) at end June 2019

Eight investment trusts join the next generation of dividend heroes

Top performing investment trust ISAs over the last 25 years

Better times ahead for UK plc?

Who wants to be an ISA millionaire?

Double-digit investment trust discounts can mean higher returns over following five years

Looking for recovery

Half of investment companies managed by the same fund manager for more than 10 years

Longest-serving managers

Manager quotes: most important lesson learned

Best moment as a manager

What keeps you motivated?

Longest-serving managers (AIC members, ex VCTs) at end June 2019

See also

Eight investment trusts join the next generation of dividend heroes

Top performing investment trust ISAs over the last 25 years

Better times ahead for UK plc?

Who wants to be an ISA millionaire?

Double-digit investment trust discounts can mean higher returns over following five years

Looking for recovery

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