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March 4, 2014

Lipper Fund Awards 2014–Famous in Frankfurt

by Lipper Alpha Insight

On February 18 more than 200 participants from the German and international fund industries celebrated the fourteenth annual Lipper Fund Awards for Germany. Since the Lipper Fund Awards ceremony is one of the most prestigious events in the German investment industry—sometimes compared with the Oscars ceremony in Hollywood—it gets a lot of attention from the asset management industry as well as from the media. The importance of the German market for Lipper is also represented by the event’s location; the Lipper Fund Awards ceremony was held in the prestigious Villa Kennedy. The three Lipper media partners—Das Investment, Mein Geld TV, and e-fundresearch—were able to publish the first pictures and the results from the ceremony during the event. A Twitter wall delivered under the hashtag #LipperAward also provided insights and comments from the attendees during the event.

To watch the official Mein Geld TV video on the Lipper Fund Awards 2014 in Germany click here

Mein Geld TV: conducting interviews before the ceremony

Mein Geld TV is conducting interviews before the ceremony

 

The methodology makes the difference

The Lipper Fund Awards are based on the Lipper Leader ratings for Consistent Return. The awards are calculated using a utility function based on the effective return over multiple non-overlapping periods—three-, five-, and ten-year horizons. The calculations over multiple periods ensure that all periods in which a fund underperforms the average of its peer group are identified. In addition, Lipper uses a utility function based on behavioural finance theory to penalize periods of underperfomance, with more significant weightings given to excess negative returns. From an investor point of view the calculation methodology ensures that the winners of the Lipper Fund Awards are funds that have provided relatively superior consistency and risk-adjusted returns compared to a group of similar funds. Therefore, funds that receive a Lipper Fund Award may be the best fit for investors who value a fund’s year-to-year consistency relative to other funds in a particular peer group.

The guests entering the ballroom for the Lipper Fund Awards 2014

The guests entering the ballroom for the Lipper Fund Awards 2014

The best mutual funds in Germany

There were 35 single funds from the largest peer groups in the German fund universe by assets under management honoured during the Lipper Fund Awards ceremony in Frankfurt. In addition, there were 56 funds that won an award for the three-year period, 78 funds were recognized with a Lipper Fund Award over the five-year period, and 55 funds won the prestigious trophy for the ten-year period.

DWS Aktien Strategie Deutschland won the Lipper Fund Award for Equity Germany over the three-year period, while Baring German Growth Trust GBP Acc won over the five- and ten-year periods.

Within the German small- and mid-cap segment, DWS German Small/Mid Cap won the trophy over the three-year period, while Lupus alpha Smaller German Champions A took home the award over the five-year period.

The asset manager company with the highest number of single awards for its funds was DWS Investments, which took home 14 individual awards.

The best asset management groups in Germany

The group awards are divided into large and small management groups, based on a regional assets-under-management split. It is not enough for a fund management company to hold just one large fund. A large management group must have at least five equity, five bond, and three mixed-asset portfolios, while a small group must have at least three equity, three bond, and three mixed-asset portfolios.

Within the bond segment the best small asset manager was Fisch Asset Management from Switzerland, which outperformed 59 competitors in this category. The best large bond fund manager was Russell Investments, which beat 45 competitors in its category.

London-based E.I. Sturdza Strategic Management outperformed its 116 opponents and was named as the best small asset manager in the equity segment. First State Investment Management won the trophy as the best large asset manager of equity funds, beating 54 competitors in terms of consistent outperformance.

There were 77 large and 29 small asset managers competing for the Lipper Fund Awards in the mixed-asset segment. Swiss Life won the trophy for the best small manager, and the award for the best large manager was won by the Switzerland-based asset manager GAM.

 

The highlight of the evening was the presentation of the overall awards. The winning groups were able to show an above-average risk-adjusted performance within their bond, equity, and mixed-asset products. In this category there were 26 large groups and 32 small groups competing for the prestigious trophy. For the overall category the Danish Jyske Invest won the award for the best small fund management group, while Invesco was named the best large fund management group.

All winner of a Lipper Fund Award Trophy on one stage

All winner of a Lipper Fund Award Trophy on one stage

As one can see from the number of fund management groups in the single categories, the Lipper Fund Awards are notoriously competitive and recognize only the fund managers that are setting benchmarks within the industry. The Awards commemorate the expertise of the collective funds management industry and individual funds’ ability to outperform the market.

 

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