Citywire announces top performing fund managers

Dubai : This week's Citywire Top Ten Fund Managers over five years grabs attention. What's the use, you might ask, harking on the regulators' adage — "Past performance is not necessarily a guide to future performance"; and continuing the argument that such information is immediate history and of no real use.

However, there are three stories worth telling. Firstly, the really successful guys tend to "stay" with the fund. Most of the top 10 fund managers have been with their funds since inception. This flies somewhat in the face of Momentum (Multi-Manager) research that shows that the average "stickability" of a fund manager to a fund is around three to four years. Success, it seems, is a glue.

Additionally, the Citywire measurements are their in-house measurements based on the manager, sometimes across more than one fund. A guide, potentially, to consistency.

Secondly, Brinson (and others) have adequately illustrated that asset allocation is the primary driver (in periods of over five years) of performance variability. Indeed, to a factor of over 95 per cent. Therefore, the areas where the ‘Top 10' have been delving is an insight into your own portfolio performance.

Thirdly, those with an appetite for higher risk might find inspiration in what the top medium-term guys are currently holding "overweight". Weightings are the greatest insight into current thinking.

So, who are the "high five" from the top 10? The "winner" for five years is Hugh Young, described as a "veteran" of Asian smaller company stock. His winning score is +83.92 per cent, equating to an average of 16.78 per cent for five years.

The singular: "hello-do you get the message" is that if the top funds are around the 16 per cent p.a average for the period, the last five years has not been a great time for risk taking.

Young's performance also underscores Asia as the place to have been. For those looking at the "overweight", he is 17 per cent exposed to Hong Kong and Malaysia and 16 per cent exposed to Singapore. His top individual holding is ASM International and United Plantations.

The second placed performer is Fritz Eggiman of AMG Gold Minen & Metalle. Although it has taken a recent battering, mining stocks still hold up on a five-year basis, Eggiman performing at +74.91 per cent with his top holdings: Barrick Gold (8 per cent); Gold Barren (8 per cent) and Agrico-Eagles (6 per cent).

In third place is BlackRock's Will Landers (+74.89 per cent for five years). Landers' success has been in Latin America where he is currently overweight Brazil to the extent of 75 per cent. Consumers (37 per cent) and Industrials (22 per cent) are the dominant sectors.

Fourth place goes to Aberdeen (again) and Devan Kaloo who Citywire describe as one of their more popular managers. Kaloo has been managing Emerging Markets Smaller Company mandates and Citywire score him at 74.89 per cent for five years. Top holdings endorse the Brazil message (14 per cent); China and HK (12 per cent) with 25 per cent of the holdings being in the financials sector.

Our fifth place start is well-known to both the emerging market scene and Dubai: Mark Mobius of Templeton Asia Growth. Mobius manages $17 billion (Dh62.44 billion) and achieved a +64.95 per cent result for five years. Top holdings were in China (30 per cent) and Thailand (23 per cent).

The writer is Chairman of Mondial Financial Partners.