By Philip Haddon | 07:31:00 | 24 May 2010
Exclusive Citywire analysis reveals the emerging market managers who have produced the best risk adjusted returns and those who have consistently outperformed.
Five year consistency
There are 71 fund managers with five year track records on Citywire’s global emerging market equity database, but only three have outperformed their average peer for each of the past five years.
Arguably the most notable of the three is Patrice Lemonnier of Amundi (pictured above), who over five years to the end of April is ranked 4/71 having returned 149%, while the average performer in the sector returned 92%.
In each discreet year, both in the booming and falling periods, he has outperformed with the four funds under his stewardship: Amundi Actions Emergents, Amundi Funds Emerging Internal Demand, Amundi Funds Emerging World and LCL Actions Emergents.
His largest margin of outperformance of the five years came in 2005-2006, when he delivered 75% while the average manager returned 59%. His narrowest margin of outperformance, meanwhile, was during the severe market falls of 2007-2008, when the average manager lost 45.8% and Lemonnier lost 45.3%.
Citywire carried out similar analysis in 2008 and 2009, and on both occasions Lemonnier also appeared as one of the most consistent managers in the sector.
The other two managers showing similar levels of consistency are Richard Sneller of Baillie Gifford and Barry Olliff from City of London Investment Management.
In total, Sneller has delivered 139% with his Baillie Gifford Emerging Markets Growth fund, which is only available currently to investors in the UK and Ireland.
Olliff has delivered the least of the three over five years, 110%, but his returns with the City of London Emerging World fund have been steady and consistently above average over the period.
Of the 134 managers with three year track records, only a handful have produced information ratios strong enough to qualify for Citywire ratings.
Of the eleven who made the grade, the highest information ratios (0.93) came from co-managers of the Skagen Kon-Tiki fund, Kristoffer Stensrud (above) and Knut Harald Nilsson.
Not only have they had the best risk adjusted returns in the sector, giving them AAA-ratings, but also the top total returns over three and five years. Over five years Stensrud has delivered 187%, more than twice the returns of the sector’s average.
Also AAA-rated are the duo are the helm of the Nevsky Global Emerging Markets fund, Martin Taylor and Nick Barnes, who also run the Nevsky Eastern European in the emerging Europe sector. With both funds combined, their information ratio is 0.78.
Unsurprisingly, Lemonnier is not far behind with an information ratio of 0.71, giving him a Citywire AA-rating.
The six other managers with strong risk adjusted performance are Devan Kaloo, manager of the Aberdeen Emerging Markets fund, Peter Hames of Danske Invest, Pauli Laursen of Sydinvest, Robeco’s Wim-Hein Pals and Jaap van der Hart, and Bryan Collings from Ignis Asset Management.
The complete list of Citywire-rated global emerging markets managers can be seen below:
Name Rating Total Returns (%)
Knut Harald Nilsson AAA 32.59
Kristoffer Stensrud AAA 32.59
Nick Barnes AAA 16.71
Martin Taylor AAA 16.71
Patrice Lemonnier AA 19.12
Devan Kaloo A 31.78
Peter Hames A 28.39
Pauli Laursen A 25.44
Jaap van der Hart A 19.55
Wim-Hein Pals A 19.32
Bryan Collings A 17.16