The AAA rating is the highest accolade Citywire awards fund managers for their risk-adjusted returns, with a tiny slither of the 15,500 managers in our database hitting these heady heights.
In the latest ratings round-up, 36 fund managers made their rating debut and at the very top, joining the 414 currently AAA-rated names.
While managers now face a tough task to retain this accolade, what do you need to know about this new batch of risk-adjusted outperformers?
In this round-up, we zero in on the very top of this elite group to see what tactics and strategies underpin the performance of the best of the best.
For more information on our ratings and how manager ratios are calculated, please click here.
Manager ratio: 1.22
Boasting almost a quarter of a century’s worth of investment experience, Gregory Finck is the first of the three new managers entering the ratings at the very top. Finck, who joined Morgan Stanley in 2014, is named on the company’s Global Mortgage Securities fund in both its Ucits-compliant and US-domiciled forms.
Finck, who co-runs the funds with Citywire AA-rated Neil Stone, focuses the $777 million Ucits version of the fund on residential MBS at present. Non-US RMBS accounts for 24.8% of exposure, while US non-agency RMBS currently makes up 23.6%. The fund has 70.6% exposure to the US market, while having around one-fifth in the UK.
Mark Tay, AllianzGI
Manager ratio: 1.27
Pipping Finck narrowly in the manager ratio stakes is Allianz Global Investors’ Singapore-based head of fixed income, Mark Tay. Tay, who has a focus solely on the Asian bond market, has 21 years of investment experience and reports into David Tan, who is CIO for fixed income, Asia Pacific at the group.
In terms of portfolio management, Tay has overseen the Luxembourg-domiciled Allianz Dynamic Asian High Yield Bond fund since its launch in October 2014. In this fund, Tay focuses on the Chinese market, which accounts for almost half of his investments on a geographic basis. Tay also favours the real estate sector, which makes up 44% of investments at a sector-specific level.
James Baker, Chelverton
Manager ratio: 2.01
Fund(s): MI Chelverton UK Equity Growth B Acc
Boasting a hugely impressive manager ratio is Chelverton veteran James Baker, who enters Citywire’s ratings for the first time at the very top of this latest batch. He is recognised for his work alongside David Taylor on the MI Chelverton UK Equity Growth fund, which was launched in October 2014.
Baker, who has more than 30 years of investment experience, has a focus on small- and mid-cap section of the UK equity market. In the £100 million (€112 million) fund, which is UK-domiciled, the managers have technology representing around one-quarter of investments. This is with 45 of the fund’s 81 holdings in stocks of £500 million market cap or below.