BY RUSS ELLIOTT | HEAD OF ASSET MANAGEMENT MARKET INTELLIGENCE
A total of 240 strategies, managed by 187 unique firms domiciled across 25 different countries, achieved their 5 year performance track record as of June 2024 (i.e. the products had inception dates between 4/1/19-6/30/19).
A 5 year track record is a significant milestone for a strategy, as consultants and investors frequently seek strategies with a 5 year track record when conducting manager research. Over the past year almost 25% of the performance related screens, across the broad Global Equity spectrum, included 5 year performance related metrics; and when allocators have been conducting further diligence across the Global Equity space, 5 year performance ranks as the #2 metric in terms of charting criteria over the past year (managers are able to see all the underlying unique metrics screened consultants and investors screen via Advantage, which provides managers insight as to how their strategies are evaluated by the market and how many screens they pass and fail).
Of the strategies surpassing the 5 year milestone:
- 48% were Equity capabilities; 23% Fixed Income; 23% Hedge Funds and the balance across Alternatives, Multi-Asset and Real Estate.
- From a geographic perspective:
- 50% of the products were either Global or Emerging Markets focused in terms of the geographic focus of the strategy.
- 38% of the strategies had a single country focus, with the largest proportion of single country strategies being US (28%) focused; India and China focused strategies accounted for the next largest group of single focused strategies (representing 3% each of the aggregate total).
- 20% of the products were dedicated ESG focused strategies; however, while some strategies may not have a dedicated ESG focus, almost half (47%) integrate ESG considerations into their respective investment process. Furthermore, 9% specified a thematic focus (Climate, Sustainable, Low Carbon, Impact etc).
- 74% had been categorized into one of 98 unique universes. Fundamental – Long/Short Equity saw the largest number of strategies passing the 5 year performance milestone (8); while the Digital Assets universe also saw 7 products reaching the 5 year mark.
- Despite a relatively short track record, 66 of the strategies had amassed over $100m in total AuM (as of June 30th, 2024) with 19 surpassing the $1bn mark.
- From a performance perspective, 46% ranked in the top quartile versus their respective peer group (of those providing 5 year performance metrics in USD); with 18% ranking in the top decile versus their peer group, listed below:
| Firm Name | Product Name | Universe |
| Fidelity Investments | Fidelity Freedom 2065 | Lifecycle/Target Date 2065 |
| Fullerton Fund Management Company Ltd | Fullerton Global Absolute Alpha Equities | Global All Cap Core Equity |
| Abakkus Asset Manager LLP | Abakkus Emerging Opportunities Fund-1 | India Equity |
| Distillate Capital Partners LLC | U.S. Small/Mid Cap Quality & Value | US Small-Mid Cap Value Equity |
| Fidelity Institutional Asset Management | Concentrated Blue Chip Growth | US Large Cap Growth Equity |
| PGIM Fixed Income | PGIM Fixed Income Emerging Markets Debt Total Return | Global Emerging Mkts Fixed Income - Hard Currency |
| Veridien Global Investors LLC | Veridien Climate Adaptation Strategy | Global All Cap Core Equity |
| Symetra Investment Management Company | Symetra Investment Management - IG CLOs | US Securitized Fixed Income - Mortgage |
| Goldman Sachs Asset Management | Emerging Markets ex China Equity Insights | Emerging Mkts ex-China Equity |
| Fisher Investments | US Sustainable Equity Impact ESG | US Large Cap Core Equity |
| Thornburg Investment Management, Inc. | Thornburg Multi Asset Strategy | Global Tactical Asset Allocation |
| T. Rowe Price | US Risk Managed Dynamic Allocation SMA Strategy | US Tactical Asset Allocation |
| Aristotle Pacific Capital, LLC | Ultra Short Bond Strategy | US Short Duration - Gov/Cred Fixed Income |
| Huber Capital Management, LLC | HCM International Large Cap Value | EAFE Large Cap Value Equity |
| John Hancock Investments | John Hancock International Dynamic Growth Fund | ACWI ex-US Large Cap Growth Equity |
| Royce & Assoc. dba Royce Investment Partners | Royce SMID-Cap Dividend Value SMA | SMA/Wrap - US Small-Mid Cap Equity |
| Carmignac | Carmignac Portfolio Family Governed | Global Large Cap Growth Equity |
| Columbia Threadneedle Investments | Europe inc UK Equity ESG | Pan-Europe All Cap Core Equity |
| M.D. Sass LLC | M.D. Sass Agency Plus | US Securitized Fixed Income - Mortgage |
| Desjardins Global Asset Management | DGIA - Systematic ESG World Equity Strategy | Global Large Cap Core Equity |
| Krane Funds Advisors, LLC | KraneShares MSCI Emerging Markets ex China Index ETF | Global Emerging Mkts Passive Equity |
| RBC Global Asset Management | BlueBay Investment Grade Global Aggregate Strategy (USD Hedged) | Global Aggregate Fixed Income |
* Managers are able to see all the underlying unique metrics screened consultants and investors screen via Advantage, which provides managers insight as to how their strategies are evaluated by the market and how many screens they pass and fail.
Nasdaq eVestment Alliance, LLC and its affiliated entities (collectively, “eVestment”) collect information directly from investment management firms and other sources believed to be reliable, however, Nasdaq eVestment does not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Performance results may be provided with additional disclosures available on Nasdaq eVestment’s systems and other important considerations such as fees that may be applicable. Not for general distribution and limited distribution may only be made pursuant to client’s agreement terms. * All categories not necessarily included, Totals may not equal 100%. Copyright 2012-2024 Nasdaq eVestment Alliance, LLC. All Rights Reserved.
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