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Have buyers been backing the global equity winners or losers?

Have buyers been backing the global equity winners or losers?

Citywire’s Global Equities sector currently comprises 440 managers whose funds are registered for sale in the UK, and together they are responsible for £108 billion of assets.

That sum, however, is concentrated in a handful of giant funds. As the table below shows, the 10 largest funds in the sector account for a quarter of that £108 billion.

It is nonetheless far from static at the top of this sector. Rewinding a year indicates considerable movement, with some significant erosion at the top of the table. Just 12 months ago, for example, the sector’s second-largest fund could boast almost a 5% market share; today the runner up has less than 3%.

Three new managers have also stormed into the top 10, taking the places of a trio of veterans. Climbing the furthest is Pictet’s Hans Peter Portner, whose Global Megatrend Selection has leapt 10 places over the past year. In absolute terms, that means the fund has doubled in size in 12 months to reach £1.9 billion today.

One of the most prominent names to have slipped out of the top 10 is Crispin Odey; even though his Allegra International fund has actually increased its market share over the year, unlike the other two drop outs, it hasn’t attracted enough to retain its prime position.

As well as capturing changes in these funds’ market shares, Citywire Discovery also reveals the extent to which fund buyers have allocated astutely and whether performance has been rewarded with inflows.

Of the six managers to have gained market share over the past 12 months, four could boast positive risk-adjusted returns over the prior one and three years: Citywire AA-rated Terry Smith, Skagen’s Kristian Falnes, Newton’s Jeff Munroe, and AA-rated Roger Morley of MFS Meridian.

The two to have boosted their market share despite risk-adjusted returns below zero – Portner and Schroders’ quant chief Justin Abercrombie – were only fractionally negative over both one and three years, signifying that they would still have outperformed trackers.

Conversely, the only one of that sextet to have achieved a positive risk-adjusted performance over the most recent year is Portner. Each of the other five have turned in negative information ratios, albeit only marginally. Smith, for instance, has the lowest number in that group over the past year, on minus 0.12.

Among those whose market share has dwindled since last summer, there are several who would seem to have been particularly harshly treated. Indeed, the three managers who relinquished their top-10 status all had information ratios above one for the prior year: Standard Life’s AA-rated Colette Conboy on 1.27, Odey on 1.45, and Fidelity’s Jeremy Podger on 2.02.

Conboy was especially underestimated: her information ratio over the past year is 1.44, compared with an average of 0.04 for this group of mega-funds and minus 0.02 for the entire sector.

Fund manager Fund name Market share June 2013 Rank June 2013 Market share June 2014 Rank June 2014 Movement
Edouard Carmignac Carmignac Investissement 6.67% 1 5.22% 1 =
Graham French / Randeep Somel M&G Global Basics 4.85% 2 2.77% 3
Justin Abercrombie Schroder QEP Global Active Value 3.24% 3 2.98% 2
Mark Glazener Robeco 3.09% 4 2.73% 4 =
Bruce Stout Aberdeen Global - World Equity 2.64% 5 1.70% 9
Colette Conboy Standard Life Inv International Trust 1.85% 6 1.52% 11
Jeremy Podger Fidelity Global Special Situations 1.60% 7 1.39% 13
Terry Smith Fundsmith Equity 1.59% 8 1.91% 6
Crispin Odey Odey Allegra International 1.47% 9 1.48% 12
Kristian Falnes Skagen Global 1.45% 10 2.05% 5
Jeff Munroe Newton Global Equity 1.38% 11 1.82% 7
Hans Peter Portner Pictet Global Megatrend Selection 0.99% 18 1.80% 8
Roger Morley MFS Meridian Funds Global Equity 1.19% 12 1.69% 10

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Related Fund Managers

Edouard Carmignac
Edouard Carmignac
292/349 in Equity - Global (Performance over 3 years) Average Total Return: 19.40%
Justin Abercrombie
Justin Abercrombie
127/349 in Equity - Global (Performance over 3 years) Average Total Return: 34.12%
Mark Glazener
Mark Glazener
202/349 in Equity - Global (Performance over 3 years) Average Total Return: 28.77%
Bruce Stout
Bruce Stout
334/349 in Equity - Global (Performance over 3 years) Average Total Return: 13.89%
Colette Conboy
Colette Conboy
26/349 in Equity - Global (Performance over 3 years) Average Total Return: 48.30%
Jeremy Podger
Jeremy Podger
67/349 in Equity - Global (Performance over 3 years) Average Total Return: 40.88%
Terry Smith
Terry Smith
2/349 in Equity - Global (Performance over 3 years) Average Total Return: 76.66%
Crispin Odey
Crispin Odey
336/349 in Equity - Global (Performance over 3 years) Average Total Return: 13.06%
Jeff Munroe
Jeff Munroe
106/349 in Equity - Global (Performance over 3 years) Average Total Return: 35.89%
Hans Peter Portner
Hans Peter Portner
107/349 in Equity - Global (Performance over 3 years) Average Total Return: 35.89%
Roger Morley
Roger Morley
90/349 in Equity - Global (Performance over 3 years) Average Total Return: 37.81%
Randeep Somel
Randeep Somel
Kristian Falnes
Kristian Falnes
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